Hi Team, i would like to know, if any body served the company 4 years and 6 month(190 days). is he eligible for gratuity, if the company works 5 days a week.
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From India
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No. As per laid down law you have to serve 5 continuous years
From India, Pune
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3180From India, Pune
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Judgment from Supreme Court
"Yes, 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)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and the Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and thereby is eligible for gratuity." Quotation from the book: Law Book (Bare Act, 2004) i.e. The Payment of Gratuity Act, 1972 (Publisher: Law Publishers () Pvt. Ltd. 18A-S.P. Marg, Post Box-1077, Allahabad-211 001. Phone: [Phone Number Removed For Privacy-Reasons] Fax-0532-622276.
Eligibility for Gratuity
1. 4 years and 6 months (190 days = 1 year) where the company follows a 5-day week.
2. 4 years and 8 months (240 days = 1 year) where the company follows a 5-day week.
The payment of gratuity (second amendment) act, 1984 clarifies this. One needs to calculate the number of years and service completion as follows. A company which follows a 5-day week:
- Doj 1.05.2000 - 01.05.2000 to 30.04.2001 - worked for 190 days
- 01.05.2001 to 30.04.2002 - worked for 190 days
If we go by the above formula and if the person does not have any break in service, they will be eligible for gratuity on 01.11.2004.
Could you please clarify on it?
From India
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"Yes, 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)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and the Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and thereby is eligible for gratuity." Quotation from the book: Law Book (Bare Act, 2004) i.e. The Payment of Gratuity Act, 1972 (Publisher: Law Publishers () Pvt. Ltd. 18A-S.P. Marg, Post Box-1077, Allahabad-211 001. Phone: [Phone Number Removed For Privacy-Reasons] Fax-0532-622276.
Eligibility for Gratuity
1. 4 years and 6 months (190 days = 1 year) where the company follows a 5-day week.
2. 4 years and 8 months (240 days = 1 year) where the company follows a 5-day week.
The payment of gratuity (second amendment) act, 1984 clarifies this. One needs to calculate the number of years and service completion as follows. A company which follows a 5-day week:
- Doj 1.05.2000 - 01.05.2000 to 30.04.2001 - worked for 190 days
- 01.05.2001 to 30.04.2002 - worked for 190 days
If we go by the above formula and if the person does not have any break in service, they will be eligible for gratuity on 01.11.2004.
Could you please clarify on it?
From India
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Gratuity Eligibility as per the Gratuity Act 1972
The Gratuity eligibility service as per the Gratuity Act 1972 is 5 years. However, according to the Supreme Court judgment and the quotation from the book mentioned below, it seems that the gratuity eligibility service is 4 years and 240 days.
Judgment from the Supreme Court
"Yes, 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)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and the Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and thereby is eligible for gratuity."
Law Book Reference
As per the Law Book (Bare Act, 2004), i.e., The Payment of Gratuity Act, 1972 (Publisher: Law Publishers (Pvt. Ltd. 18A-S.P. Marg, Post Box-1077, Allahabad-211 001. Phone: [Phone Number Removed For Privacy-Reasons], Fax: [Phone Number Removed For Privacy-Reasons], website: lawpublishersindia.com), the eligibility for gratuity is as follows:
1. 4 years and 6 months (190 days = 1 year) where the company follows a 5-day week.
2. 4 years and 8 months (240 days = 1 year) where the company follows a 5-day week.
The Payment of Gratuity (Second Amendment) Act, 1984 clarifies this.
From India, Madras
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The Gratuity eligibility service as per the Gratuity Act 1972 is 5 years. However, according to the Supreme Court judgment and the quotation from the book mentioned below, it seems that the gratuity eligibility service is 4 years and 240 days.
Judgment from the Supreme Court
"Yes, 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)], it is enough that an employee has a service of 240 days in the preceding 12 months, and it is not necessary that he should have completed one whole year's service. As the definition of continuous service in the Industrial Dispute Act and the Payment of Gratuity Act are synonymous, the same principle can be adopted under the act also. Hence, an employee rendering service of 4 years, 10 months, and 11 days is considered to have completed 5 years of continuous service under sec.4(2) and thereby is eligible for gratuity."
Law Book Reference
As per the Law Book (Bare Act, 2004), i.e., The Payment of Gratuity Act, 1972 (Publisher: Law Publishers (Pvt. Ltd. 18A-S.P. Marg, Post Box-1077, Allahabad-211 001. Phone: [Phone Number Removed For Privacy-Reasons], Fax: [Phone Number Removed For Privacy-Reasons], website: lawpublishersindia.com), the eligibility for gratuity is as follows:
1. 4 years and 6 months (190 days = 1 year) where the company follows a 5-day week.
2. 4 years and 8 months (240 days = 1 year) where the company follows a 5-day week.
The Payment of Gratuity (Second Amendment) Act, 1984 clarifies this.
From India, Madras
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