Dear all,

Greetings,

Please advise whether a person who has been terminated before completing 5 years of service would still be entitled to gratuity. The termination was initiated by the company, leading to the individual's inability to fulfill the 5-year tenure.

Regards,
Jyoti Negi

From India, Delhi
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Dear all,

Greetings.

Please advise if a person who has been terminated before completing 5 years of service will be entitled to gratuity since he could not fulfill the 5-year tenure due to termination by the company.

Regards,
Jyoti Negi

Dear Madam,

The Gratuity Act states that a person must work continuously for 5 years and complete 240 days each year. If the individual has not completed 5 years and 240 days each year, then they are not eligible for gratuity even if their services are terminated.

I hope this helps.

Best regards,
[Your Name]

From United States, New York
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Dear Madam,

The Gratuity Act states that a person has to work continuously for 5 years and complete 240 days each year. If a person has not completed 5 years of service and has not completed 240 days of work each year, then they are not eligible for gratuity even if their services are terminated.

From United States, New York
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Dear Jyothi,

Although the Payment of Gratuity Act states that an employee becomes eligible for gratuity only after completing five years of continuous service, there have been judgments allowing gratuity for employees who have completed four years and 240 days in the fifth year. If your employee has met this criterion of four years and 240 days in the fifth year, they are entitled to claim gratuity.

"Continuous service" for gratuity purposes refers to a total of 240 working days in a 12-month period for employees above ground and 190 days in a 12-month period for employees below ground (mines).

Regards,
Madhu.T.K

From India, Kannur
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Dear Jyoti,

I completely agree with Mr. Madhu T.K. According to your posted question, he can claim gratuity because the company terminated their employee. Please check that he has been present for 240 days in a period of 12 months, and the same continues for four years.

Amit Sharma
Asst. Manager
HR & Compliance
Ph: 09729355041

From India, Delhi
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Dear Mr Madhu Will you pls give us the judgement details, allowing gratuity to employees who have completed four years and 240 days in the fifth year. It would be quite elaborative. Regards Suresh
From India, Hyderabad
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Hi Please check whether this person has completed 240 days in the 5th year or not. He is eligible for gratuity for 5 years, if he has completed 240 days of service in the 5th year. Srinivas
From Germany
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Hi, if the employee didn’t completed the five years of the service he is not entitle for the payment of gratuity. thanks & regards sumit kumar saxena, 9899669071, 0120-4131277
From India, Ghaziabad
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Please find the judgment attached.

The gratuity is calculated on the basis of the number of years of service, and it will be equal to 15 days' salary (Basic + DA) last drawn for every completed year of service. If there is a fraction of a year of more than six months, the same shall be treated as one year, and any fraction less than six months shall be ignored. For determining the daily average of salary, the monthly salary shall be divided by 26. The maximum gratuity payable as per the Payment of Gratuity Act is Rs 3,50,000. This limit is under revision.

Regards,
Madhu.T.K

From India, Kannur
Attached Files (Download Requires Membership)
File Type: pdf Gratuity - Madras HC judg1 .pdf (1.55 MB, 304 views)

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It is Basic Pay + DA. Example: Basic pay: 5000 DA: 2000 Total: 7000 Length of Service: 7 years. The formula is last Drawn Wages/26*15*years of service. In the above example, Gratuity will be calculated as under: 7000/26*15*7 = Rs.28, 269/-. The maximum limit for payment of Gratuity is fixed at Rs.3.5 lacs. Hope this answers your query. Cheers!!! Vasant Nair
From India, Mumbai
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