Eligibility for Gratuity Under the Gratuity Act

I have a question regarding the Gratuity Act. If someone has worked for 4 years and 10 months continuously, are they eligible for gratuity? As per the Gratuity Act, continuous service of 5 years is required to be eligible for gratuity benefits. Please clarify this as it is very urgent.

Regards,
P. Satheesraja

From India, Coimbatore
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Gratuity is eligible to an employee who has completed 5 years of service. However, there is an exception. If the employee has completed 4 years and 6 months, then he is still eligible for gratuity. Therefore, the above-mentioned person is eligible for gratuity.

P.S.: Giving gratuity is solely at the discretion of the employer. So, if any disciplinary action is taken against you, the company shall still withhold your gratuity amount.

Regards,
Yashwanth R
HR Associate
SKY Technologies

From India, Bangalore
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I have been in such situation in past and my company paid gratuity to me on the basis that 4 years and 7+ months of continuos service is considered as 5 years service as per the gratuity law. ravi
From India, Jaipur
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Anonymous
13

I am sure that it is not a matter of 4 years and 10 months; it's a matter of whether a person completes 4 years and 240 days of continuous service. Once you check that you have completed those 240 days, if you have, then you will definitely receive it. There is no need to worry as it is the employer's duty and responsibility to hand over your gratuity. If you do not receive it, then you can appeal to the appropriate government authority. They will send a show-cause notice to the employer, and if the employer still does not comply, a notice will be sent to the district collector for the recovery of gratuity with interest, similar to land revenue.

Rules:

1. Employers must pay within 30 days from the date the employee is eligible to receive it.
2. The ceiling amount is 10 lakhs.

Thanks & Regards,
Madhavi

From India, Visakhapatnam
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If the person has completed 4 years and 240 days. He is eligible for gratuity. Govind Pawar Assit. Manager - IR Godrej & Boyce Mfg Co Ltd
From India, Mumbai
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An employee who worked for a period of 4 years and more than 240 days in 5th year, he is eligible for the gratuity.
From India, Hyderabad
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Is it necessary to make gratuity insured?? If so, which section or rule. Please guide for further action. Regards Govind Pawar
From India, Mumbai
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Gratuity and Disciplinary Actions

Gratuity is not liable to be insured. It cannot be withheld solely due to disciplinary action. It can only be forfeited or reduced if an employee is terminated for misconduct specified in Section 4(6) of the Payment of Gratuity Act (POG Act).

Regards,
Varghese Mathew

From India, Thiruvananthapuram
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SM
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Dear Seniors, I want to know about Gratuity applicability. For example, if an employee worked in a company for a period of 4 years and 11 months on a contract basis (7 months through X Contractor and 4 years and 4 months through Y Contractor). Now, kindly clarify whether he is eligible to claim Gratuity or not.

Thanks,
SSB

From India, Chandigarh
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he is not eligible as he has no continuous service of 5 years with any one employer. Varghese mathew
From India, Thiruvananthapuram
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