Dear Members, Please enlighten, Can an Employer pay Gratuity to its employees for service period of 3 years, (As per Gratuity act) ?
From India, Delhi
From India, Delhi
Hello Ajay, According to my knowledge to pay the employee any gratuity from employer, minimum 5 years of service is must.
From India, Jaipur
From India, Jaipur
Dear Mr Ajay Sharma, Please go through The Payment of Gratuity Act, 1972 & relevant rules before raising query
Employer can pay Gratuity to an Employee who has completed just 3 Years of Service not under the Act, but as a gesture of goodwill etc. But, this will set a precedent
From India, New Delhi
609Employer can pay Gratuity to an Employee who has completed just 3 Years of Service not under the Act, but as a gesture of goodwill etc. But, this will set a precedent
From India, New Delhi
Gratuity is a sum of money that the employer pays to employee for services rendered in the company.
Payment of Gratuity Act 1972 lays down some terms and conditions.
Period of 5 years continuous service is mentioned as a primary condition for eligibility.
However employer can on his own pay gratuity after 3 years also but it is not mandatory as per the Act.
It is a kind of good will gesture to an exiting employee as a reward for good service.
No legal compulsion exists in this case.
From India, Pune
Payment of Gratuity Act 1972 lays down some terms and conditions.
Period of 5 years continuous service is mentioned as a primary condition for eligibility.
However employer can on his own pay gratuity after 3 years also but it is not mandatory as per the Act.
It is a kind of good will gesture to an exiting employee as a reward for good service.
No legal compulsion exists in this case.
From India, Pune
As per gratuity act a employee has to complete minimum 5 years continue service.if your company will be giving gratuity below 5 years,it will benefit for employees but as per indian labour law it not applicable.
From India, Chennai
From India, Chennai
As per gratuity act a employee was death or terminated of services company will be giving gratuity if employees was worked less then 5 years of services,it will benefit for employees but as per indian labour law it not applicable.
From India, Noida
From India, Noida
Dear Hr@slindia, Please Post with due application of mind. your statement that "As per gratuity act a employee was death or terminated of services company will be giving gratuity if employees was worked less then 5 years of services"
Please note that Employees who have not completed 5 Years will not get Gratuity in case their Service is Terminated
From India, New Delhi
Please note that Employees who have not completed 5 Years will not get Gratuity in case their Service is Terminated
From India, New Delhi
It is possible only in case of death and termination when no boundation of 5 years continuous service.
From India, Pune
From India, Pune
Dear Sharma: The query is answered by Section 4 (1) of the Payment of Gratuity Act 1972, read as follows:
4. Payment of gratuity.- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,--
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
So it is only in the event of death or disablement that gratuity becomes due and payable before completion of five years continuous service as per the PGA.
From India, Mumbai
4. Payment of gratuity.- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,--
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
So it is only in the event of death or disablement that gratuity becomes due and payable before completion of five years continuous service as per the PGA.
From India, Mumbai
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