Hi,
I am asking this question on behalf of one of my friends. He recently changed his job after spending nearly five years with a company. When he went to complete his relieving formalities with his old company, the company refused to pay him his Gratuity amount as he had not completed five full years with the company.
My friend actually worked for the company for four years and 310 days. Now my question is this: Is it necessary to complete full five years to be eligible for Gratuity?
While researching, we came across a case in which there was a ruling by a High Court (I don't remember which one) that any employee who has completed four years and 260 days is eligible for payment of Gratuity. I am unable to find anything in the law that clears this particular doubt. Can you please help me resolve this issue and provide proper guidance to my friend? Is he eligible to get Gratuity or not?
From India, Mumbai
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33I am asking this question on behalf of one of my friends. He recently changed his job after spending nearly five years with a company. When he went to complete his relieving formalities with his old company, the company refused to pay him his Gratuity amount as he had not completed five full years with the company.
My friend actually worked for the company for four years and 310 days. Now my question is this: Is it necessary to complete full five years to be eligible for Gratuity?
While researching, we came across a case in which there was a ruling by a High Court (I don't remember which one) that any employee who has completed four years and 260 days is eligible for payment of Gratuity. I am unable to find anything in the law that clears this particular doubt. Can you please help me resolve this issue and provide proper guidance to my friend? Is he eligible to get Gratuity or not?
From India, Mumbai
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Dear Gaurang,
I hope the previous reply is sufficient for you. If your friend's salary break-up (CTC) includes gratuity as well, then regardless of 310 or 240 days, he is entitled to the gratuity. In most companies, depending on the contribution or rapport with management, the management sanctions the same on a pro-rata basis.
Regards,
Balaji
From India, Hyderabad
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I hope the previous reply is sufficient for you. If your friend's salary break-up (CTC) includes gratuity as well, then regardless of 310 or 240 days, he is entitled to the gratuity. In most companies, depending on the contribution or rapport with management, the management sanctions the same on a pro-rata basis.
Regards,
Balaji
From India, Hyderabad
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Gratuity Eligibility.pdf