Understanding Gratuity and Bonus Eligibility: HR Dispute Resolution Insights - CiteHR

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Respected Seniors,

My sister joined a reputed IT company on 2nd July 2007, and her last working day is 24th April 2012. Is she eligible for gratuity and bonus? She has Saturday and Sunday off facility.

Please help me with the reason. If yes, why? If no, then why? This information will be valuable for us to present our case while negotiating with HR.

Thanks in advance,

Neha

From India, Mumbai
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My sister is eligible for gratuity if she has completed continuous service of five years. If in the fifth year she has worked for 240 days, then she is entitled to receive gratuity, even if she has worked for 30 days in the financial year starting from March onwards.

I hope this information is helpful to you. If you have any questions, please feel free to ask.

Regards

From India
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Dear Those who worked for 30 days in financial year are eligible for bonus those who works for 4 years 240 days are eligible for gratuity
From India, Nalgonda
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For bonus, there is an eligibility limit with respect to the salary as well.

Gratuity Eligibility

It is clear that there is eligibility after 5 continuous years or 4 years and upon completing 240 days in the 5th year.

From India, Chandigarh
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Your sister is eligible for gratuity for having completed continuous service of 4 years and 240 days in the subsequent calendar year. She is also eligible for a bonus for having completed continuous service as stipulated under the Payment of Bonus Act.

Regards,
S.K. Johri

From India, Delhi
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Yes, she is eligible for a bonus, and as per the Payment of Bonus Act, the bonus due is to be paid annually. In the case of a new organization, the bonus can be optionally paid for the initial 5 years, and after 5 years, it must be paid annually.

Regarding Gratuity, she is eligible as she has completed continuous service of 4 years and 240 days in the subsequent calendar year. The gratuity is to be paid along with or following her full and final settlement at the current basic/26*15*5, i.e., whatever amount that may be.

Regards,

From India, Solan
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Thanks a lot every one !!! It’s really helpful to me. Please let me know, Do we need to hire a lawyer ? because HR is not accepting this concept of 4 years 240 Days. Thanks, Neha
From India, Mumbai
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Have you tried to find out why HR is not accepting the concept as mentioned by you for 4 years and 240 days? I suggest asking your sister to write an email to the concerned HR individual with whom you have interacted. Also, cc the Head of HR and her reporting boss. Wait for a week's time; if they do not revert to you with a reason.

I am not sure what cadre your sister was working in. If she was at a level above supervisor, she will have to approach a civil court. If she falls under the blue-collar employee category, then she can approach the labor court under the ID Act or PULP and MRTUP Act for Maharashtra. Documents you would need to submit include her appointment letter and the last 3 salary slips.

Make sure you have a copy of your complaint registered by you in court, scan, and re-email that copy to all the concerned individuals whom you had contacted earlier.

For more details, you can get in touch at [Email Removed For Privacy Reasons].

Regards,
DEV

From India, Mumbai
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The HR may not be aware of the High Court ruling to this effect. You may please collect one and remit it to your sister for transmission to her HR. Alternatively, let her claim after completing 5 years.

Regards,
S.K. Johri

From India, Delhi
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Thank you so much. My sister had a word with the HR with reference to your replies on Citehr. Now her HR head replied to her with a promise to pay gratuity. For the bonus, we are still in discussion with them.

Thanks a lot once again.

Regards,
Neha

From India, Mumbai
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Yes, dear. She is eligible for the gratuity and bonus because she has already completed her continuous service of 4 years and 240 days for gratuity, and 30 days of the financial year for a bonus. However, due to the following reasons, someone may not be found eligible if:

GRATUITY

An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment), lay off, strike, or a lockout, or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act. In the case of a female, she has been on maternity leave; however, the total period of such maternity leave must not exceed twelve weeks.

Where an employee employed in a seasonal establishment is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such a period if he has actually worked for not less than seventy-five percent of the number of days on which the establishment was in operation during such period.

BONUS

An employee shall be disqualified from receiving a bonus under this Act if he is dismissed from service for:

- Fraud; or
- Riotous or violent behavior while on the premises of the establishment; or
- Theft, misappropriation, or sabotage of any property of the establishment.

Regards,
Vikash Sharma

From India, Delhi
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