Hello, I have completed 4 years and 11 months and 5 days in my previous job. In all likelihood, I have completed 240 days in my 5th year. Am I eligible for gratuity? I contacted my ex-employer, and the finance team said they are evaluating the case. Please advise. Any pointers to law books or legal docs supporting my case are greatly appreciated.
Thank you
From India, Bangalore
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1Thank you
From India, Bangalore
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Hi, Any employee who has completed 4 yrs and 8 months or (4 yrs and 240 days in the 5th year.) of service is eligable for gratuity as per gratuity act ( The Payment of Gratuity Act, 1972)
From India, Chennai
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From India, Chennai
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An employee is Eligible for Gratuity only if he’s having 240 days continous service in each completed year for 5 years.
From India, Hyderabad
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From India, Hyderabad
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As per the Gratuity Act, any employee who has not completed their five years of continuous service will not be eligible for gratuity, even if they have completed four years and eleven months. Therefore, Anu will not be eligible for gratuity.
From India, Angul
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From India, Angul
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Mr. Coolheadtamil is correct. You are required to complete 240 days in a year. Therefore, for the fifth year, if you have already completed your 240 days (though in 11 months), you will be eligible for gratuity.
Mayuri Manager - HR
From India, Pune
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Mayuri Manager - HR
From India, Pune
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hello anuaro plz find the attacment for ur clerification. Regards, Rohan bhatt.
From India, Surat
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From India, Surat
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I do agree with rath ratikanta,as per gratuity act any employee who have not completed there 5 years of continous service they will not eligible for grtuity.
From India, Ahmadabad
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From India, Ahmadabad
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Hi,
It is clarified here that as per the Gratuity Act, any employee who has not completed his continuous 5 years of service in an establishment will not be eligible for receiving the gratuity amount, even if he has completed 4 years and 11 months of service. The 240-day clause is mentioned in the Act for the purpose of calculating Gratuity. That is, if the person is entitled to gratuity and in the sixth year he has completed 240 days of continuous service, then he will be entitled to the whole year's gratuity in the sixth year. To be entitled to the gratuity amount, one must complete 5 years of service in an establishment. Therefore, you are not eligible to receive the gratuity amount.
V.K. Gupta
From India, Delhi
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It is clarified here that as per the Gratuity Act, any employee who has not completed his continuous 5 years of service in an establishment will not be eligible for receiving the gratuity amount, even if he has completed 4 years and 11 months of service. The 240-day clause is mentioned in the Act for the purpose of calculating Gratuity. That is, if the person is entitled to gratuity and in the sixth year he has completed 240 days of continuous service, then he will be entitled to the whole year's gratuity in the sixth year. To be entitled to the gratuity amount, one must complete 5 years of service in an establishment. Therefore, you are not eligible to receive the gratuity amount.
V.K. Gupta
From India, Delhi
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Dear Friends,
The Madras High Court judgment has been regarded by HR professionals as the final word on the matter of gratuity payment before completing five years of continuous service. It has been interpreted as having legal binding nationwide. For the benefit of all, I believe it is necessary to clarify the situation.
The Madras High Court judgment holds legal binding only in the state of Tamil Nadu. In other states, it carries persuasive value but not legal binding.
There has been no decision from the Supreme Court on this issue. Until such a judgment is made by the highest court in the country, the provisions of the Gratuity Act will always take precedence. The Act specifies that gratuity eligibility is only after completing five years of continuous service. The calculation of gratuity should consider 240 days in each year.
The exception to the five-year service requirement is only in cases of death or disablement.
Regards,
Anil Kaushik
Chief Editor-Business Manager-HR magazine
B-138, Ambedkar Nagar, Alwar-301001 (Raj.) India
Email: bmalwar@yahoo.com
Mobile: 09829133699
From India, Delhi
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The Madras High Court judgment has been regarded by HR professionals as the final word on the matter of gratuity payment before completing five years of continuous service. It has been interpreted as having legal binding nationwide. For the benefit of all, I believe it is necessary to clarify the situation.
The Madras High Court judgment holds legal binding only in the state of Tamil Nadu. In other states, it carries persuasive value but not legal binding.
There has been no decision from the Supreme Court on this issue. Until such a judgment is made by the highest court in the country, the provisions of the Gratuity Act will always take precedence. The Act specifies that gratuity eligibility is only after completing five years of continuous service. The calculation of gratuity should consider 240 days in each year.
The exception to the five-year service requirement is only in cases of death or disablement.
Regards,
Anil Kaushik
Chief Editor-Business Manager-HR magazine
B-138, Ambedkar Nagar, Alwar-301001 (Raj.) India
Email: bmalwar@yahoo.com
Mobile: 09829133699
From India, Delhi
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