Hi,

I am working in the IT industry, and I work 5 days a week. My date of joining the organization was 09.04.2007, and my last working day in the organization was 05.03.2012. Since I am not completing 5 years, my company is not willing to pay the gratuity amount due to me. After researching on different websites, I found that a person who has worked for 4 years and 240 days becomes eligible for gratuity payment, though I didn't find any supporting clause or section. If this is true, then I believe I am eligible for gratuity payment.

Can I request your expertise here as I have no knowledge of the subject? Am I eligible or not? If yes, can you provide some supporting documents which I can forward to my company so that they pay my gratuity amount.

Many thanks in advance.

Regards,
Vishal Srivastava
9810249951

From United Kingdom

Dear Vishal,

You have no doubt completed four years by 8th April 2011. Since you resigned on 5th March 2012, you should have also worked for 240 days during the twelve-month period from 4th March 2011 to 5th March 2012 to be eligible for gratuity. However, any leave with wages availed by you during the said 12 months will be included in calculating the 240 days.

B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai Tel: 09930532927

From India, Mumbai

Thanks, Sai, for your response. I don't think I have availed leave in excess of 15 days, which includes my casual, sick, and annual leave. If you take that into account for accounting purposes, even though it totals more than 240 days, it makes me feel like I am eligible. What do you think? Can you please share some documentary proof that states a person who has served 4 years and 240 days in any organization is also eligible for gratuity payment? Is this necessary as I need to show my company that I am eligible? Thanks again for your kind help.

Regards, Vishal Srivastava 09810249951

From United Kingdom

Hi,

Please refer to the book "BARE ACT Gratuity Act" for documentary proof. This book is legally valid. Any person who has completed 4.5 years or more is eligible for gratuity. Also, you may find court orders on Google as well.

Thanks,

From India, Indore

Hi Vishal,

I can provide a citation of a case in support of what I have said. You can show it to your company after procuring a copy of the judgment. The case is Mettur Beardsell Ltd, Madras v. Regional Labour Commissioner (Central) 1998 III LLN 414; 1998 LLR 1072 (Mad HC). Additionally, you can also browse Chipinbiz Company's website for e-books that deal with similar issues.

B. Saikumar
HR & Labor Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: 09930532927

From India, Mumbai

Hi Vishal,

I support the statements of Mr. Sai Kumar. Since you have worked for four years and in excess of five months, you are eligible for Gratuity. We have incorporated this clause in the Gratuity Policy amendment of our company recently.

Regards,
Sumit

From India, Mumbai

Dear Vishal,

Pl. go through the highlighted attached portions of the Gratuity Act (bare act) which are relevant to your case, and you'll know how you are placed. Don't delay; put them on the defensive, apply for your claim in the prescribed form under proper acknowledgment immediately, and wait for exactly one month. Then, follow up on the lines of what the act says. Don't worry, don't delay.

There are umpteen number of case laws similar to yours.

All the best.

Kumar S.

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: doc Payment of gratuity act.doc (77.5 KB, 1879 views)


Dear Sir,

For entitlement to Gratuity, one should complete 5 years of service. It is a must as per the Gratuity Act. However, in one case, the Madras High Court gave a verdict stating that the completion of 4 years, and in the 5th year, if anybody puts in 240 days of work, it should be treated as completion of 5 years of service, and such a person is eligible for gratuity.

The Gratuity Act is a Central Government Act. The Central Government has to amend it for applicability in all states. Therefore, at present, this completion of 4 years and 240 days in the 5th year for gratuity payment is applicable in the Madras State only. In other states, one should complete 5 years of service.

If any management wants to pay gratuity as per the Madras High Court's decision, it will be a welcome aspect in the interest of the welfare of employees. Nothing prevents.

D. Gurumurthy
LL.HR & IR Consultant

From India, Hyderabad

Dear sir, Agar kisi ne khabhi bhi apne esi card ka istmal nahi kiya hai to kya use jo esi ke liye rupee kate hai wo wapes mil sakte hai ya nahi. Ager mile sakte hai to kasie. thanks
From India, Delhi

Hi, I have worked for a reputed Indian company for 4 years and 9 months in the capacity of Senior Manager out of my total 22 years of career with some good companies. I need help and suggestions on the following points.

1. If a past employer is not willing to pay the Gratuity despite all provisions, to whom should I approach since I have worked for 4.9 years and am eligible as per the Gratuity Act?

2. Can an employer reduce the fixed compensation (fixed emoluments) to less than what was offered prior to joining without any reason to any individual employee in the middle of employment (at least after working for 2 years), especially when the employer had offered better prospects before joining the organization? If not, whom should I approach for justice?

Thanks,
Suresh

From India, Delhi

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