Dear Sir,
I have a query related to gratuity. I am working in the IT sector in Chennai and have resigned. Previously, my company followed a rule of 4 years and 190 working days to claim gratuity, and now it follows a rule of 4 years and 240 calendar days.
My Date of joining: 15-Mar-2013
My last date in the company: 15-Dec-2017
I have worked for 4 years and 9 months. Please let me know if I am eligible to claim the gratuity amount according to the 4 years and 240 days rule and the 4 years and 190 working days rule.
Awaiting your kind reply.
From India, Chennai
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2I have a query related to gratuity. I am working in the IT sector in Chennai and have resigned. Previously, my company followed a rule of 4 years and 190 working days to claim gratuity, and now it follows a rule of 4 years and 240 calendar days.
My Date of joining: 15-Mar-2013
My last date in the company: 15-Dec-2017
I have worked for 4 years and 9 months. Please let me know if I am eligible to claim the gratuity amount according to the 4 years and 240 days rule and the 4 years and 190 working days rule.
Awaiting your kind reply.
From India, Chennai
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Yes, you are eligible as per Payment of Gratuity Act .You have completed more than 4 years and 240 days of service.
From India, Mumbai
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From India, Mumbai
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Rule position is as follows:
Section 2A indicates that 'Continuous service' means uninterrupted service and includes service interrupted by sickness, disablement due to accident during the course and arising out of employment, earned leave, maternity leave in the case of females (max 12 weeks), lay off, strike, or a lockout, or cessation of work not due to any fault of the employee concerned. If the service is interrupted by causes other than those enumerated above, it will not be deemed continuous. Section 2-A further provides that the employee shall be deemed to be in continuous service if, for a minimum number of days, the employee has been actually employed and worked. In the case of persons employed below the ground of a mine, at least 190 days, and in any other case for at least 240 days in a year, the employee must have worked. If the period to be reckoned is 6 months, then the above minimum number of days will be not less than 95 days in the case of mines and 120 days in other cases.
Entitlement of gratuity arises on completion of five years of continuous service subject to the above rules. The company may contest a gratuity claim.
From India, Pune
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Section 2A indicates that 'Continuous service' means uninterrupted service and includes service interrupted by sickness, disablement due to accident during the course and arising out of employment, earned leave, maternity leave in the case of females (max 12 weeks), lay off, strike, or a lockout, or cessation of work not due to any fault of the employee concerned. If the service is interrupted by causes other than those enumerated above, it will not be deemed continuous. Section 2-A further provides that the employee shall be deemed to be in continuous service if, for a minimum number of days, the employee has been actually employed and worked. In the case of persons employed below the ground of a mine, at least 190 days, and in any other case for at least 240 days in a year, the employee must have worked. If the period to be reckoned is 6 months, then the above minimum number of days will be not less than 95 days in the case of mines and 120 days in other cases.
Entitlement of gratuity arises on completion of five years of continuous service subject to the above rules. The company may contest a gratuity claim.
From India, Pune
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As specified by Nathrao - You have not completed continuous service of 5 years. This provision of 4 years + 190 or 240 days became applicable in case of termination of employment, retrenchment, or termination of employment on the basis of Award. You have resigned from employment, and your claim of Payment of Gratuity will not be entertained by your employer as so many established case laws are available.
From India, Mumbai
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From India, Mumbai
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Hi Sentha,
The topic of eligibility for a person who has worked for 4 years and 240 days has been widely discussed in the past, and people have varied interpretations on the topic. According to The Payment of Gratuity Act 1972, to be eligible, a person must have rendered 5 years of service without interruptions, excluding any lockouts, accidents during employment, etc., that are not beyond the control of the employee.
In a judgment by the Madras High Court, where the employee filed a case against the company, similar to the case you are claiming here, the decision was in favor of the employee. Through the regular process, if you file your case with the employer, they may reject the application submitted in Form 1; however, this application process cannot be avoided. If your employer fails to provide the required documents, typically due to an interpretation of the act, you may file the case first with the local area assistant labor commissioner, referring to the attached case copy.
It may also occur that you will not achieve your desired outcome through labor channels; in that case, you may need to approach the honorable court for resolution. If you require any assistance in this matter, please feel free to contact me at the number provided below.
From India, New Delhi
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The topic of eligibility for a person who has worked for 4 years and 240 days has been widely discussed in the past, and people have varied interpretations on the topic. According to The Payment of Gratuity Act 1972, to be eligible, a person must have rendered 5 years of service without interruptions, excluding any lockouts, accidents during employment, etc., that are not beyond the control of the employee.
In a judgment by the Madras High Court, where the employee filed a case against the company, similar to the case you are claiming here, the decision was in favor of the employee. Through the regular process, if you file your case with the employer, they may reject the application submitted in Form 1; however, this application process cannot be avoided. If your employer fails to provide the required documents, typically due to an interpretation of the act, you may file the case first with the local area assistant labor commissioner, referring to the attached case copy.
It may also occur that you will not achieve your desired outcome through labor channels; in that case, you may need to approach the honorable court for resolution. If you require any assistance in this matter, please feel free to contact me at the number provided below.
From India, New Delhi
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Hi all,
Thanks for your response. I have mentioned below details as specified in our company's gratuity policy.
Gratuity Policy Objective:
This is a statutory payment as per the Payment of Gratuity Act, 1972. Gratuity payment for eligible employees, for their service period of not less than 4 years and 240 calendar days, will be paid as part of their final settlement.
Eligibility:
In the case of separation due to resignation or retirement, gratuity is payable if you have rendered continuous service for not less than 4 years and 240 calendar days (continuous service refers to working days excluding LOP).
My date of joining: 15-Mar-2013
End date: 15-Dec-2017
I completed 4 years and 9 months (including weekends, public holidays, sick leave, and paid leaves) in my company. So kindly clarify, based on the above statement, whether I am eligible to receive the gratuity amount as part of the final settlement?
Thank you.
From India, Chennai
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Thanks for your response. I have mentioned below details as specified in our company's gratuity policy.
Gratuity Policy Objective:
This is a statutory payment as per the Payment of Gratuity Act, 1972. Gratuity payment for eligible employees, for their service period of not less than 4 years and 240 calendar days, will be paid as part of their final settlement.
Eligibility:
In the case of separation due to resignation or retirement, gratuity is payable if you have rendered continuous service for not less than 4 years and 240 calendar days (continuous service refers to working days excluding LOP).
My date of joining: 15-Mar-2013
End date: 15-Dec-2017
I completed 4 years and 9 months (including weekends, public holidays, sick leave, and paid leaves) in my company. So kindly clarify, based on the above statement, whether I am eligible to receive the gratuity amount as part of the final settlement?
Thank you.
From India, Chennai
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(Fact Checked)-The user reply is partially correct. As per the Payment of Gratuity Act, 1972, the employee is eligible for gratuity after completing 4 years and 240 days of continuous service. Weekends, public holidays, sick leave, and paid leave are included in the calculation of continuous service. The user is eligible for gratuity based on the information provided. (1 Acknowledge point)
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Dear Mr. Sentha,
Since you have completed 4 years and 309 days of service, even as per your company's policy, you are entitled to Gratuity. The policy excludes LOP only for calculating continuous service.
From India, Chandigarh
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Since you have completed 4 years and 309 days of service, even as per your company's policy, you are entitled to Gratuity. The policy excludes LOP only for calculating continuous service.
From India, Chandigarh
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Hello Mr. Subramanigopala,
The service tenure of Mr. Sentha works out to 4 years and 275 days. Yes, as per the court judgment on eligibility for gratuity, Mr. Sentha is qualified for the benefit of gratuity payment. However, for instance, if Mr. Sentha had availed around 40 unpaid leaves approved by his employer, would he still qualify for the gratuity benefit payment?
Joining Date: 15 March 2013
Last Working Day (Service End Date): 15 December 2017
Unpaid Leaves Availed: 40 Days
Gross Service Period: 4 Years 275 Days
Net Service Period (Excluding LOP Leaves): 4 Years 235 Days.
Please advise/explain.
Thanks and Regards,
Lancy Menezes
Mobile # 87799 72491
From India, Mumbai
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The service tenure of Mr. Sentha works out to 4 years and 275 days. Yes, as per the court judgment on eligibility for gratuity, Mr. Sentha is qualified for the benefit of gratuity payment. However, for instance, if Mr. Sentha had availed around 40 unpaid leaves approved by his employer, would he still qualify for the gratuity benefit payment?
Joining Date: 15 March 2013
Last Working Day (Service End Date): 15 December 2017
Unpaid Leaves Availed: 40 Days
Gross Service Period: 4 Years 275 Days
Net Service Period (Excluding LOP Leaves): 4 Years 235 Days.
Please advise/explain.
Thanks and Regards,
Lancy Menezes
Mobile # 87799 72491
From India, Mumbai
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Dear Sir,
I have a query related to gratuity. I am working for a manufacturing company and have resigned.
My Date of joining: 27-July-2014
My last date in the company: 10-March-2019
I have worked for 4 years, 7 months, and 1 week. Please let me know if I am eligible to claim the gratuity amount.
I am awaiting your kind reply.
From India, Pune
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I have a query related to gratuity. I am working for a manufacturing company and have resigned.
My Date of joining: 27-July-2014
My last date in the company: 10-March-2019
I have worked for 4 years, 7 months, and 1 week. Please let me know if I am eligible to claim the gratuity amount.
I am awaiting your kind reply.
From India, Pune
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Hi, Sir,
As discussed, I need the following legal opinion on the points below:
1. One of our employees has not completed continuous service of 5 years.
2. They left the company after 4 years, 10 months, and 25 days (i.e., from 06-11-2006 to 30-09-2011).
3. Are they eligible for the Payment of Gratuity Act-1972?
4. According to the Act, employees are entitled to gratuity payment upon completion of 5 years of service.
From India, New Delhi
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As discussed, I need the following legal opinion on the points below:
1. One of our employees has not completed continuous service of 5 years.
2. They left the company after 4 years, 10 months, and 25 days (i.e., from 06-11-2006 to 30-09-2011).
3. Are they eligible for the Payment of Gratuity Act-1972?
4. According to the Act, employees are entitled to gratuity payment upon completion of 5 years of service.
From India, New Delhi
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I have completed 4 years and 247 days in the organization in Gujarat. I have already provided documents such as the Act related to gratuity as well as the Madras High Court decision/order. I have requested many times for them to consider the case, but until now, they have not done so. According to them, the Madras High Court decision is not admissible in other states and gratuity cannot be claimed. Hence, they are denying it.
Kindly provide a document that can be used as a supporting document for the case or that clarifies the facts.
From India, Ahmedabad
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Kindly provide a document that can be used as a supporting document for the case or that clarifies the facts.
From India, Ahmedabad
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Dear Mohit, Please give details: how have you calculated 4 years and 247 days of continuous service.
From India, Chandigarh
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From India, Chandigarh
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Gratuity not Required After Completing 5 Years of Continuous Service
By virtue of the judgment of the Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C. 433] - https://boardhr.blogspot.com/2019/09...e-5-years.html
From India, Kolkata
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By virtue of the judgment of the Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C. 433] - https://boardhr.blogspot.com/2019/09...e-5-years.html
From India, Kolkata
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Dear Rahul ji,
The said judgment of Hon'ble Supreme Court is under ID Act and not under Gratuity Act. The provisions of ID Act do not apply to the Gratuity Act. In the said judgment, not even a single word exists mentioning "gratuity".
Also, please go to the opening line of your above comments which say "Gratuity not Required Complete 5 years as Continuous Service". It clearly states that for the payment of gratuity, 5 years of continuous service are not required to be completed.
Regards
From India, Chandigarh
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The said judgment of Hon'ble Supreme Court is under ID Act and not under Gratuity Act. The provisions of ID Act do not apply to the Gratuity Act. In the said judgment, not even a single word exists mentioning "gratuity".
Also, please go to the opening line of your above comments which say "Gratuity not Required Complete 5 years as Continuous Service". It clearly states that for the payment of gratuity, 5 years of continuous service are not required to be completed.
Regards
From India, Chandigarh
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Ok, so I joined this company in 2012. During the interview and signing of papers, I was told that I was being hired on a contract and the only difference between me and any other employee is that I would not have a PF and medical insurance deduction. We only had a deduction of 10% TDS. We were paid a fixed "fee" every month.
After about 6-7 years of working in the company, after GST was introduced, we were asked to submit monthly invoices for tax audit purposes. Now, all the rules and regulations, all policies of the company were applicable to me. I was recruited by the head of the department, asked to report to her, and assigned tasks of equal nature with anyone else in the team. I was quite young back then and didn't realize that these wordings were simply abused and the recruits were tactfully made to sign them, with the clandestine goal of circumventing provisions of the labor laws.
My work in the organization is as per the monthly roster prepared by the HOD for both "on rolls" staff as well as the few "on contract" staff. Often by default in a year or two, the "on contract" staff simply get put on payrolls. I was even asked if I wanted to, but I said that I preferred to get that formality done a year or so later because the salary I drew back then was quite less. Deductions such as PF, Diwali Bonus, among others, would reduce my monthly take-home to significantly lower amounts.
To make it clear - I was in practice an employee with no rights to do a "come and go as I like" sort of job or do just the amount of work I chose to and demand pay only for that. Not doing a chore, just any chore or task asked of me would have led to disciplinary action against me. Therefore, in practice, the word "independent" was null and void.
Until recently, the company did not have well-framed policies and documents that defined various entitlements and duties of employees. Only recently, with a revamp in the human resources department, have these documents been uploaded on the intranet site.
As of now, the exit interview form says that only "on-roll" employees are entitled to gratuity benefits, and I would only be given the "fee" after deduction of the number of days I am unable to serve notice. Here we go. I am not even allowed to just exit at my own free will and will have to pay for the notice period not served.
About 3-4 years ago, they got all the "contract" employees to sign a letter saying they are voluntarily forfeiting their right to PF benefits.
Now, given that I have "signed" this tacitly worded letter, I see some of the forum commentators seem to be on the side of the employer, and it is causing me paranoia if the labor commissioner may have a divided opinion on this. My company is not any ordinary one; they have significant influence at top places. It makes me wonder whether this will go towards a court and lawyer fees and years of runaround.
From India
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After about 6-7 years of working in the company, after GST was introduced, we were asked to submit monthly invoices for tax audit purposes. Now, all the rules and regulations, all policies of the company were applicable to me. I was recruited by the head of the department, asked to report to her, and assigned tasks of equal nature with anyone else in the team. I was quite young back then and didn't realize that these wordings were simply abused and the recruits were tactfully made to sign them, with the clandestine goal of circumventing provisions of the labor laws.
My work in the organization is as per the monthly roster prepared by the HOD for both "on rolls" staff as well as the few "on contract" staff. Often by default in a year or two, the "on contract" staff simply get put on payrolls. I was even asked if I wanted to, but I said that I preferred to get that formality done a year or so later because the salary I drew back then was quite less. Deductions such as PF, Diwali Bonus, among others, would reduce my monthly take-home to significantly lower amounts.
To make it clear - I was in practice an employee with no rights to do a "come and go as I like" sort of job or do just the amount of work I chose to and demand pay only for that. Not doing a chore, just any chore or task asked of me would have led to disciplinary action against me. Therefore, in practice, the word "independent" was null and void.
Until recently, the company did not have well-framed policies and documents that defined various entitlements and duties of employees. Only recently, with a revamp in the human resources department, have these documents been uploaded on the intranet site.
As of now, the exit interview form says that only "on-roll" employees are entitled to gratuity benefits, and I would only be given the "fee" after deduction of the number of days I am unable to serve notice. Here we go. I am not even allowed to just exit at my own free will and will have to pay for the notice period not served.
About 3-4 years ago, they got all the "contract" employees to sign a letter saying they are voluntarily forfeiting their right to PF benefits.
Now, given that I have "signed" this tacitly worded letter, I see some of the forum commentators seem to be on the side of the employer, and it is causing me paranoia if the labor commissioner may have a divided opinion on this. My company is not any ordinary one; they have significant influence at top places. It makes me wonder whether this will go towards a court and lawyer fees and years of runaround.
From India
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Gratuity Eligibility.pdf
Amended Labor Laws.doc
CiteHR.AI
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