I joined on 17/02/14 with one of the leading NGO Hospitals. Through a letter, I was informed that in view of the introduction of the Electronic Medical Recording System, I was served a letter asking to quit my current employment with the last working day on 30/09/2018 (two months notice period) and obtained my signature. On 30/9/18, I was issued a relieving letter, and September 2018 salary was paid. Also, I was informed that due to the non-completion of 4 years and 8 months, I am not eligible for gratuity, which requires the completion of 4.8 years of continuous service.
Clarification on Completed Year of Service
It is further informed that during 2014, 2015, 2016, and 2017, the number of working days each year was more than 300 days. Please clarify if a completed year means 365 days or if service rendered for more than 240 days in a year is equivalent to one year of service?
5th Year - 2018
In case it is taken into account from 1/1/2018, the service rendered during the 5th year amounts to 9 months/265 days. If taken into account the date of joining, i.e., 17/2/2018, the number of working days during the 5th year - 2018 amounts to 7 months 14 days or 226 days. Kindly clarify whether I am eligible for the payment of gratuity. Your advice on this matter is appreciated.
From India, Bengaluru
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Clarification on Completed Year of Service
It is further informed that during 2014, 2015, 2016, and 2017, the number of working days each year was more than 300 days. Please clarify if a completed year means 365 days or if service rendered for more than 240 days in a year is equivalent to one year of service?
5th Year - 2018
In case it is taken into account from 1/1/2018, the service rendered during the 5th year amounts to 9 months/265 days. If taken into account the date of joining, i.e., 17/2/2018, the number of working days during the 5th year - 2018 amounts to 7 months 14 days or 226 days. Kindly clarify whether I am eligible for the payment of gratuity. Your advice on this matter is appreciated.
From India, Bengaluru
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Dear Sunil,
From February 17, 2014, to September 30, 2018, your actual length of service in the organization amounts to 4 years, 7 months, and 13 days only. Therefore, you are not eligible for gratuity under the Payment of Gratuity Act, 1972, or as per the ratio decidendi of the case law frequently cited in support of a claim for gratuity by any employee who has not completed a minimum of 5 years of continuous service with the same employer.
From India, Salem
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6108From February 17, 2014, to September 30, 2018, your actual length of service in the organization amounts to 4 years, 7 months, and 13 days only. Therefore, you are not eligible for gratuity under the Payment of Gratuity Act, 1972, or as per the ratio decidendi of the case law frequently cited in support of a claim for gratuity by any employee who has not completed a minimum of 5 years of continuous service with the same employer.
From India, Salem
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Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc