Respected Seniors, One of our employee was joinned on 20.08.2007 and he was resigned on 23.06.2012. Is he eligible for gratuity benefit. Please advise me. Thanks & Regards Muthu 8754487111
From India, Chennai
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From India, Chennai
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Dear Muthu, This employee is not eligible for gratuity benefit, as he has not completed 5 years service. Regards, Prachi (HR)
From India, Mumbai
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1From India, Mumbai
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Hi, If he completes 4yrs 5months it will treated as 5yrs.he is eligible for gratuity. Regards, Uma
From India, Hyderabad
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From India, Hyderabad
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Hi, He is elegible for gratuity.he is completed for 4 years 8 months regards hema 9731014561
From India, Bangalore
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From India, Bangalore
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Dear Muthu, Pl. read para 4 and for continuity of service of read 2A (1) (2). As he completed 4 years 240 days we need to consider him as eligible for gratuity. Regards, Mohan Kumar
From India, Bangalore
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From India, Bangalore
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As count of his exp from doj, he is fully eligible for gratuity. As his five year already completed in 2012.
From India, Mumbai
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From India, Mumbai
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Dear Muthu, What Mr.Mohan said is correct. And also check whether this employee completed 240 days in each year of last 4 years. Regards K. Anjireddy
From India, Bangalore
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From India, Bangalore
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who is completed 240 days in a year he can be eligible for grauity regards, sachin
From India, Mumbai
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From India, Mumbai
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Need to complete minimum 4 yrs and 240 days to get the Gratuity. Completely agree with Hema and Kumardqs.
From India, Mumbai
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From India, Mumbai
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In the present scenario, I do not agree with Mr. Kumar DQS. The employee has to complete 5 years for gratuity entitlement. There is no provision for waiver of shortfall in service. If there is any High Court or Supreme Court judgment on this matter, please update me.
Thanks.
From India, Mumbai
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Thanks.
From India, Mumbai
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In normal cases, gratuity is payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years. However, sometimes problems arise regarding whether an employee is required to be present on all working days in a year. This issue is addressed in Section 2A (Continuous service) of the Act, which clarifies that for the calculation of a one-year period, if an employee has worked for not less than two hundred and forty days in an establishment operating for not less than six days a week during the preceding twelve calendar months before the reference date, they are eligible for gratuity payment.
In your specific case, you mentioned that the concerned employee joined on 20.08.2007 and resigned on 23.06.2012, indicating completion of 4 years, 10 months, and 3 days of service. It is now necessary to determine if during the 10 months and 3 days period, the employee has completed 240 days of work. If this is confirmed, the employee will indeed be entitled to gratuity payment.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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In your specific case, you mentioned that the concerned employee joined on 20.08.2007 and resigned on 23.06.2012, indicating completion of 4 years, 10 months, and 3 days of service. It is now necessary to determine if during the 10 months and 3 days period, the employee has completed 240 days of work. If this is confirmed, the employee will indeed be entitled to gratuity payment.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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The employee is very much eligible for payment of gratuity as he has completed more than 240 days in the 5th year of his service. As per Sec. 25B of the ID Act, a workman shall be said to be in continuous service for a period of one year if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness, authorized leave, accident, or a strike which is not illegal, a lockout, or cessation of work which is not due to any fault on the part of the workman.
Continuous Service and Gratuity Eligibility
Section 2-A of the Payment of Gratuity Act defines "Continuous service of one year of service," which is similar to Sec. 25B of the ID Act mentioned above. Here is the judgment of Madras HC which held that if an employee has completed 240 days of continuous service during the 5th year of his service, he is eligible for payment of gratuity.
From India, Delhi
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Continuous Service and Gratuity Eligibility
Section 2-A of the Payment of Gratuity Act defines "Continuous service of one year of service," which is similar to Sec. 25B of the ID Act mentioned above. Here is the judgment of Madras HC which held that if an employee has completed 240 days of continuous service during the 5th year of his service, he is eligible for payment of gratuity.
From India, Delhi
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There is no need to seek any judgments because the Act is clear. After completion of 4 years, during the last year of employment, if more than 240 days of continuous employment are completed, it is 'deemed' that five years are completed, and liability to pay gratuity arises.
Regards,
Sameer Paranjape, Labour Law Consultant, Pune [Phone Number Removed For Privacy Reasons]
From India, Pune
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Regards,
Sameer Paranjape, Labour Law Consultant, Pune [Phone Number Removed For Privacy Reasons]
From India, Pune
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As per the provisions of the Gratuity Act 1972, para 2A, if an employee completes 4 years and 240 days of service, they will be eligible for gratuity payment. The employee has completed more than 4 years and 240 days, making them eligible for gratuity.
Kindly let me know if you need any further clarification.
Thank you.
From India, Gurgaon
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Kindly let me know if you need any further clarification.
Thank you.
From India, Gurgaon
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Less than 5 years service - Eligibility for payment of gratuity.pdf
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