Dear Sir/Madam,

I had an employee working for almost 9 years in our organization. The said employee was on the payroll for 4 years and 2 months. Later, as he had attained the retirement age, he was allowed to work on a voucher basis. Now, after 2 years, the said employee has applied for gratuity. However, my query is if he was on the payroll for only 4 years and 2 months, is he eligible for gratuity? Presently, I do not have his resume and his personnel file. Please suggest/advice in this case.

Thanks & Regards,
Hepsiba

From India, Mumbai
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Dear Hepsiba He is eligible for bonus 4 years only. some cases only eligible for bonus Ex : 1.Death 2.Retirement, 3.Retrenchment. Regards Sampath Nisarga HR Solutions. 9686254764
From India, Bangalore
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Dear Hepsiba,

If your establishment is covered under the Payment of Gratuity Act, 1972, and if this employee has worked continuously for nine years with or without a role, then he is eligible to receive gratuity for these nine years from the employer with interest.

R.N.KHOLA (LL&IR) Welcome Skylark Associates

From India, Delhi
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He is entitled for retrenchment compensation if he was a workmen and Co had terminated him.If he has resigned he is not eligible for the compensation. Varghese Mathew
From India, Thiruvananthapuram
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Dear Hepsiba,

Your query is not very clear. What I gather from your inquiry is that the employee has been working for almost 9 years in your organization. However, certain clarifications are required on the points mentioned below for a proper and correct reply:

(i) Whether your organization is covered under the Payment of Gratuity?

(ii) Whether he was a regular employee of the organization?

(iii) Whether his payroll for 4 years and 2 months has been included in the period of 9 years or if that was separate?

(iv) What was the reason for his conversion to a payroll employee?

(v) Whether he has received the payment of gratuity for the 9-year period? Your query on the payment of gratuity is limited to a payroll period of 4 years and 2 months.

Let me reply to your query based on the input you have provided, presuming that your organization is covered under the Payment of Gratuity. The employee will not be eligible for the payment of gratuity under the Payment of Gratuity Act, 1972, for 4 years and 2 months, as gratuity is payable upon termination of one's employment after completing 5 years of continuous service.

The practice of converting from regular to payroll or putting someone to work on a voucher basis is considered unfair labor practices, which are prohibited and punishable under Section 25T and 25U (Chapter VC) of the Industrial Disputes Act, 1947.

BS Kalsi

Member since Aug 2011

From India, Mumbai
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