Dear All,
It is correct that after completion of 4 years and 240 days, an employee can claim the Gratuity as the same is not defined in the Payment of Gratuity Act, but as per the attached decision, it can be claimed.
Thanks,
Ravindra Kumar Dubey
Personnel Officer
Allanasons Limited
9311210795
From India, Phagwara
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2It is correct that after completion of 4 years and 240 days, an employee can claim the Gratuity as the same is not defined in the Payment of Gratuity Act, but as per the attached decision, it can be claimed.
Thanks,
Ravindra Kumar Dubey
Personnel Officer
Allanasons Limited
9311210795
From India, Phagwara
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The act specifically mentions that an employee is entitiled to get Gratuity if he has completed 5 years of continious working as per formula herein below:- Basic + DA * 15/26. regards, SK Tyagi
From India, Delhi
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From India, Delhi
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I think the Madras High Court's decision in this regard is also upheld by the Supreme Court.
i.e. 4 years and a minimum of 240 days of physical work in the 5th year - this period is eligible to receive gratuity.
Experts, please confirm.
From India, Pune
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i.e. 4 years and a minimum of 240 days of physical work in the 5th year - this period is eligible to receive gratuity.
Experts, please confirm.
From India, Pune
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The gratuity eligibility as per Gratuity Act 1972 is 5 years of continuous service. Sub section (2) of section 4 is for calculation of gratuity and not for the eligibility of gratuity.
But as per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity.
The judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
Now almost all organizations are paying gratuity if an employee has completed 4 years of continuous service and 240 days continuous working in 5th year.
From India, Pune
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But as per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity.
The judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
Now almost all organizations are paying gratuity if an employee has completed 4 years of continuous service and 240 days continuous working in 5th year.
From India, Pune
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Dear Ulhas ji,
You mentioned that, according to the judgment of the Supreme Court, an employee is eligible for gratuity after completing 4 years of continuous service and 240 days of continuous work in the 5th year. When he completes his 240 days in the 5th year, he becomes eligible for gratuity. I would like to inquire, where can I find this judgment?
The Supreme Court judgment in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C. 433)], falls under the ID Act and not the Gratuity Act. The definition of continuous service under the ID Act and the Gratuity Act is similar; however, it may not be appropriate, in my opinion, to apply it to gratuity. These two enactments serve different purposes.
While many employers (not all) are now paying gratuity upon completion of 4 years and 240 days in the 5th year, you cannot force any employer to provide gratuity under these circumstances.
From India, Mumbai
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You mentioned that, according to the judgment of the Supreme Court, an employee is eligible for gratuity after completing 4 years of continuous service and 240 days of continuous work in the 5th year. When he completes his 240 days in the 5th year, he becomes eligible for gratuity. I would like to inquire, where can I find this judgment?
The Supreme Court judgment in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal, [(1980) (4) S.C.C. 433)], falls under the ID Act and not the Gratuity Act. The definition of continuous service under the ID Act and the Gratuity Act is similar; however, it may not be appropriate, in my opinion, to apply it to gratuity. These two enactments serve different purposes.
While many employers (not all) are now paying gratuity upon completion of 4 years and 240 days in the 5th year, you cannot force any employer to provide gratuity under these circumstances.
From India, Mumbai
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Dear All,
We are paying the bonus to contractual employees as per the act. However, the unpaid bonus amount, where it should be paid, is to be taken back to our Accounts department. Should it be paid to the Welfare Office in Mumbai instead? If so, do we have a format for this, or could you please let me know the procedure for making the payment?
Devendra.
From India, Pune
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We are paying the bonus to contractual employees as per the act. However, the unpaid bonus amount, where it should be paid, is to be taken back to our Accounts department. Should it be paid to the Welfare Office in Mumbai instead? If so, do we have a format for this, or could you please let me know the procedure for making the payment?
Devendra.
From India, Pune
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Deven ji,
Under section 6A of the Maharashtra Labour Welfare Act, unpaid accumulation means any payments due to the employees but not made to them. Such payment/unpaid accumulation is to be transferred to the MLW Board within a period of 3 years from the date on which they became due. All unpaid accumulations shall be deemed to be abandoned property.
From India, Mumbai
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Under section 6A of the Maharashtra Labour Welfare Act, unpaid accumulation means any payments due to the employees but not made to them. Such payment/unpaid accumulation is to be transferred to the MLW Board within a period of 3 years from the date on which they became due. All unpaid accumulations shall be deemed to be abandoned property.
From India, Mumbai
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Dear sir,
Thank you very much. As per the court decision, 4 years and 240 days are eligible for gratuity. The HR head of my last company discussed this issue extensively and decided to grant me the gratuity. I have finally received the same. Thanks to all.
From India, Gurgaon
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Thank you very much. As per the court decision, 4 years and 240 days are eligible for gratuity. The HR head of my last company discussed this issue extensively and decided to grant me the gratuity. I have finally received the same. Thanks to all.
From India, Gurgaon
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four years continues service means how many days need every year
From United Kingdom, London
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From United Kingdom, London
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