One of our employees who worked with us from May '08 to May '12 and then resigned. After 8 months, he rejoined from Dec '12 and resigned again in Dec '17. Now, he is asking for gratuity from May '08. Is he eligible for gratuity as per his requirement, or is he eligible for the period from Dec '12 to Dec '17 only as per the act? Does anyone have any precedents for such cases of breaks in service and requesting full gratuity?
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His entitlement is only from Dec 12 onwards. There is a clear break in service, and the person has exited and been cleared from the company.
This period of service is not counted when he has rejoined and served 5 years. The earlier period is to be excluded.
From India, Pune
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3180This period of service is not counted when he has rejoined and served 5 years. The earlier period is to be excluded.
From India, Pune
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Hi Hanif,
Gratuity should be paid for the period Dec 2012 to Dec 2017 only. The above-referred employee's initial period of service came to an end by May 2012 as he resigned and was relieved. Hopefully, the full and final settlement was also cleared and acknowledged by the employee. His next tenure with the same company started in Dec 2012 as a fresh employee with a new emp code/new PF number and so on. Therefore, he can't claim gratuity considering his past stint. As per the Gratuity Act, a continuous/uninterrupted service period is a must.
While an employee may request it, it is not mandatory for the employer legally. However, considering the service and loyalty of the employee, if the employer wishes to make a payment considering both periods of service, then the employer may do so gracefully.
From India, Madras
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Gratuity should be paid for the period Dec 2012 to Dec 2017 only. The above-referred employee's initial period of service came to an end by May 2012 as he resigned and was relieved. Hopefully, the full and final settlement was also cleared and acknowledged by the employee. His next tenure with the same company started in Dec 2012 as a fresh employee with a new emp code/new PF number and so on. Therefore, he can't claim gratuity considering his past stint. As per the Gratuity Act, a continuous/uninterrupted service period is a must.
While an employee may request it, it is not mandatory for the employer legally. However, considering the service and loyalty of the employee, if the employer wishes to make a payment considering both periods of service, then the employer may do so gracefully.
From India, Madras
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Less than 5 years service - Eligibility for payment of gratuity.pdf
Minimum Qualifying service for Gratuity under the Payment of Gratuity Act.docx