An employee joined our organisation on his 55th year of age and now due for retirement after 3 years of his service with us Is he eligible for gratuity ?
From India, Mumbai
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no he will be eligible for gratuity under payment of gratuity act. but employer can pay him ex-gratia.
From India, Pune
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Dear, As per Gratuity Act an employee should render continuous service for not less than five year to avail the gratuity,so the employee is not eligible for gratuity.
From India, New Delhi
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Dear Friend,

As you are aware, as per the gratuity rule, an employee is entitled to gratuity upon completion of 5 years of service in a normal case. However, if the employee is asked to leave for any reason, even before completing 5 years but after 3 years of service, that employee is still entitled to gratuity.

Thank you.

From India, Mumbai
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How to calculate gratuity if employee has worked for 10 years and 7 months continuously
From India, Surat
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10 years and 7 months will be considered as 11 years under PGA
From India, Pune
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Dear Tannex,

As per the Payment of Gratuity Act, 1972, an employee should have rendered continuous service for not less than five years to avail of the gratuity. However, the completion of five years is not necessary where the termination of employment is due to death or disablement. Thus, the individual you have mentioned shall not be eligible for the payment of gratuity.

BS Kalsi
Member since Aug 2011

From India, Mumbai
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Dear Member,

Which of the rules (Central or State) states that if an employee is terminated or asked to leave upon completion of 3 years of service, then that employee is entitled to gratuity?

R.N.KHOLA
(M) 09810405361
Welcome Skylark Associates


From India, Delhi
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Dear Sh. Desai Ji,

I want to draw your attention to your yesterday's mail where you mentioned that "an employee is entitled to gratuity on completion of 5 years of service in a normal case, but if the employee is asked to leave or due to any reason, if an employee is dismissed after completing 3 years of service, then that employee is entitled to gratuity." I would like to clarify that an employee is not entitled to gratuity in a normal case, but only upon termination of employment after completing continuous service for not less than five years: (i) on superannuation, (ii) on retirement or resignation, or (iii) on death or disablement due to accident or disease.

I am sorry I have not been able to find the provisions where an employee is entitled to gratuity if asked to leave or dismissed for any reason after completing 3 years of service. I would appreciate it if you could enlighten me on the provisions existing in the Payment of Gratuity Act, 1972, or Rules.

Regards,

BS Kalsi
Member since Aug 2011

From India, Mumbai
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Dear Minayan Desai, Pl clarify under what provision of the Act any employee with 3 years or less service is paid gratuity and where it is being in practice as stated by you.
From India, Selam
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Dear All,

An employee is entitled to gratuity only after serving 5 years of meritorious service. In this case, if he is on the rolls of the company, he should have worked 240 days in a year to be eligible for gratuity for that year. Any service in a year less than 240 days will disqualify him from receiving gratuity. However, the company has the liberty to consider this period.

Thanks,
Mritunjay Nath Sahu
GM(HR)

From India, Vadodara
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Dear Seniors,

I need clarity on gratuity. One of my colleagues has resigned recently, with a date of joining on 09.10.2008 and a relieving date of 31.07.2013, which totals 4 years, 9 months, and 22 days. Therefore, I request clarification on whether he is eligible for gratuity or not.

Anticipating your valuable response.

Regards,
Ravi

From India, Hyderabad
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Dear Sir/Mam, What is gratuity rule? how can calculate it? Please explain. Ravindra Sharma
From India, Delhi
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Dear Ravi,

You are advised to see the trailing mail posted by Sh. Mritunjay Nath Sahu where he has nicely explained that an employee borne on the muster rolls of the company should have worked 240 days in a year to enable him to earn gratuity for that year. Any service in a year less than 240 days will disqualify him from getting gratuity.

In view of the above, you need to calculate the number of days you have worked in each of the years, including the last year of your service.

BS Kalsi
Member since Aug 2011

From India, Mumbai
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Gratuity shall be payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years:
(a) on their superannuation,
(b) on their retirement or resignation, or
(c) on their death or disablement due to accident or disease.
It is important to note that the completion of five years of continuous service is not required if the termination of employment is a result of death or disablement. Therefore, the condition of five years of service does not apply in cases of death or disablement.

Even if an employee has worked for 240 days in the fifth year, they are still entitled to gratuity even if they have not completed the full five years of service.

Rajendra Bhavsar
Manager (P&A)
Afcons Infrastructure Ltd., CMRL Project, Chennai
8754543347.

From India, Mumbai
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Dear Sir want to know the Provision Of PF, ESI And gratuity for the employee over 58 yrs. As we are transferring him from company payroll to contractual payroll
From India, delhi
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