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I have been working with my current organization since 02/08/2010, and I have resigned on 31/10/2014 with a two-month notice period. (My last working day with the company will be 31/12/2014). Am I eligible for gratuity?
From India, Hyderabad
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Hi,

You joined in August 2010. Only if you have completed 4 years and 6 months (240 days) in the fifth year will you be eligible for Gratuity. Since you will be relieved in December 2014, you would have completed 4 years and 4 months only, and hence, you will not be eligible for Gratuity. Try if you can extend your stay in the company for another 2 months to get Gratuity.

Thanks,
S. Narasimhan

From India, Bangalore
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I agree with the view of the member. If you have completed 4 years and 240 days in the fifth year, you are eligible for gratuity.

Since you have not completed 240 days in the fifth year, you will not be eligible for gratuity.

From India, Pune
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Dear Seniors, I am Renu, Incharge HR working for poultry based company, Kindly clarify me that Child Labour is 14 years old or 18 years old?
From India, Coimbatore
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Hi, "Child " means a person who has not completed his 14 years of age. Regards,
From India, Surat
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According to the Child Labor (Prohibition & Regulation ) Act, 1986, \"Child\" means a person who has not completed his fourteen years of age. Thanks. G. Hari
From India, Alappuzha
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According to the Child Labor(Prohibition & Abolition) Act, 1986, \"Child\" means a person who has not completed his fourteenth year of age. Thanks. G. Hari
From India, Alappuzha
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Dear Ragavendra,

In the 5th year, if you complete nearly about 8 months (240 days), then you are eligible to apply for gratuity. But you can also consult your HR about this as some companies have their own policies. In some companies, it's like unless you complete 10 years in the same company, gratuity is not paid even if you are eligible for gratuity. While in some companies, they pay if you have completed a total of 5 years even if you are eligible. Seek guidance from your HR department of your company too. Here we can only tell you as per the law. You just have to check how the company policies are connected with the law.

From India, Mumbai
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Dear Seniors,

Kindly suggest to me whether an employee who is terminated after serving for 4 years and 10 months will be eligible for Gratuity. The termination was due to unprofessional practices in the company. I also wanted to know if he can be given an Experience letter upon request.

Regards,
Sharad Kumar

From India, Bangalore
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Dear,

As per the Gratuity Act, you are not eligible for gratuity. I agree with Mr. Raghvendra; you have to check with the HR department regarding the company policies. It also depends on your last performance, behavior, and attitude with management.

D.N. Sharma

From India, Delhi
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1. The majority of companies follow the law on gratuity for the payment of gratuity to their employees.

2. Companies that have established rules for the payment of gratuity to employees only if they have completed 10 years of service with them are in violation of the law on gratuity.

3. In the current case, it is quite clear that the company follows the Payment of Gratuity Act, according to which the employee is not eligible for the payment of gratuity. Hence, in all probability, this would be the reply of the HR department if they are approached.

Thanks,
G. Hari

From India, Alappuzha
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1. As per the provisions of the Payment of Gratuity Act, Gratuity can be forfeited in the following cases:

a. Employee whose services has been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of property belonging to the employer – gratuity to be forfeited to the extent of such damage or loss caused.

b. Employee whose services has been terminated for riotous or disorderly conduct or any other act of violence on his part – gratuity to be forfeited wholly or partially.

c. Employee whose services has been terminated for any act which constitutes an offence involving moral turpitude committed by him during the course of his employment – gratuity to be forfeited wholly or partially.

2. The employee is entitled to full or partial gratuity based on the reasons for his termination, as per law.

3. For being eligible, the terminated employee should have completed 5 years of service (namely, in the fifth year of service he should have worked for at least 240 days). In other words, in the last 10 months he should have worked for at least 240 days.

4. Regarding his request of an Experience letter, the same can be given but the real reasons for separation should also be specified therein.

Thanks.

G. Hari




From India, Alappuzha
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The Gratuity Act clearly mentions that gratuity is payable to an employee who has completed 5 years of service (with an exemption in the case of an employee who expires before completing 5 years of service). As far as I understand from the spirit of the Act, an employee should complete a period of 5 years from the date of joining to the date of cessation of service. This period of 5 completed years has to be maintained compulsorily.

The point of 240 days is applicable only when the employee has taken 'leave without pay' or was not working for any period during any year during the course of service. For example, if an employee joined service on 1st January 2010 and resigns on 31st December 2014, he has completed 5 years of service provided he has worked for a minimum of 240 days during each of these 5 years from 2010 to 2014. If he resigns on any day before 31st December 2014, he has not completed 5 years of continuous service even if he has worked more than 240 days during each year. This, I believe, should be the correct interpretation.

If the lawmakers wanted to make gratuity payment to employees who complete 4 years and 240 days, they would not have mentioned '5 completed years of service'. This is my interpretation, although I believe the Madras High Court has given some other judgment which does not seem to follow the spirit of the Act. I am open to correction.

From India, Kolkata
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