Hi, I have worked for 4.9 months. Am I eligible for gratuity.
I have a claim to my company for gratuity, but they told me my total working days are 171, which means they are not including weekly offs, holidays, and leave.
Please let me know, am I eligible or not. My date of joining is 17th August 2016, and the last working date is 5th May 2021.
From India, Delhi
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I have a claim to my company for gratuity, but they told me my total working days are 171, which means they are not including weekly offs, holidays, and leave.
Please let me know, am I eligible or not. My date of joining is 17th August 2016, and the last working date is 5th May 2021.
From India, Delhi
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Dear Friend,
Section 25B in The Industrial Disputes Act, 1947, defines continuous service. For the purposes of this Chapter, a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness, authorized leave, an accident, a strike which is not illegal, or a lockout or a cessation of work which is not due to any fault on the part of the workman.
Your eligibility for gratuity depends on whether you have completed 5 years of continuous service or not. Your employer would not pay you gratuity if you do not have continuous service of five years. The first paragraph contains the calculation of continuous service for reference.
Your total working period is 4 years 8 months 18 days (from August 17, 2016, to May 5, 2021), which is less than five years. Furthermore, your tenure in the 5th year is 197 days, which is less than 240 days. Therefore, you are not eligible.
From India, Mumbai
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716Section 25B in The Industrial Disputes Act, 1947, defines continuous service. For the purposes of this Chapter, a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness, authorized leave, an accident, a strike which is not illegal, or a lockout or a cessation of work which is not due to any fault on the part of the workman.
Your eligibility for gratuity depends on whether you have completed 5 years of continuous service or not. Your employer would not pay you gratuity if you do not have continuous service of five years. The first paragraph contains the calculation of continuous service for reference.
Your total working period is 4 years 8 months 18 days (from August 17, 2016, to May 5, 2021), which is less than five years. Furthermore, your tenure in the 5th year is 197 days, which is less than 240 days. Therefore, you are not eligible.
From India, Mumbai
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Sorry, Prabhat, to differ from your viewpoint and calculation of the length of service of the poster.
Firstly, since the calculation of the actual length of continuous service is for the purpose of determining the eligibility for gratuity under the Payment of Gratuity Act, 1972, your reference to section 25-B of the ID Act, 1947 instead of sec. 2-A of the PGA, 1972 is not necessary though the two sections are in pari materia.
Secondly, under both the Acts, the calculation has to be done with effect from the date of termination of employment and not from the date of joining of the employee. In other words, the calculation is to be done by commencing and counting backwards from the relevant date, i.e., the date of termination of employment, which is the date of relieving from the establishment. Hence, the length of service of the individual in the establishment is 4 Years-8 Months-18 Days, i.e., (2021-05-05) - (2016-08-17). Effectively, thus, the poster had worked for 4 years and 258 days in the fifth year. Therefore, by virtue of the deeming provision of sec. 2-A of the PGA, 1972, the poster is qualified for gratuity under the Act.
Thirdly, sec. 2-A mandates that the interruption in service due to holidays, authorized leave, and the like is to be treated only as non-interruption for the purpose of the calculation of 240 days in a period of the preceding 12 months. Hence, the contention of the employer is not correct.
If the employer still maintains his stand and refuses to pay gratuity on this ground, the poster may file a claim for gratuity together with interest for the period of delay before the Controlling Authority under the Act for the area where the establishment is situated.
From India, Salem
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Firstly, since the calculation of the actual length of continuous service is for the purpose of determining the eligibility for gratuity under the Payment of Gratuity Act, 1972, your reference to section 25-B of the ID Act, 1947 instead of sec. 2-A of the PGA, 1972 is not necessary though the two sections are in pari materia.
Secondly, under both the Acts, the calculation has to be done with effect from the date of termination of employment and not from the date of joining of the employee. In other words, the calculation is to be done by commencing and counting backwards from the relevant date, i.e., the date of termination of employment, which is the date of relieving from the establishment. Hence, the length of service of the individual in the establishment is 4 Years-8 Months-18 Days, i.e., (2021-05-05) - (2016-08-17). Effectively, thus, the poster had worked for 4 years and 258 days in the fifth year. Therefore, by virtue of the deeming provision of sec. 2-A of the PGA, 1972, the poster is qualified for gratuity under the Act.
Thirdly, sec. 2-A mandates that the interruption in service due to holidays, authorized leave, and the like is to be treated only as non-interruption for the purpose of the calculation of 240 days in a period of the preceding 12 months. Hence, the contention of the employer is not correct.
If the employer still maintains his stand and refuses to pay gratuity on this ground, the poster may file a claim for gratuity together with interest for the period of delay before the Controlling Authority under the Act for the area where the establishment is situated.
From India, Salem
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Dear Friend,
If the company is paying a monthly salary, including weekly off and holidays, in such a case, the company has to consider the weekly offs and holidays when counting 240 days. In your case, you are eligible to receive gratuity.
From United States ,
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If the company is paying a monthly salary, including weekly off and holidays, in such a case, the company has to consider the weekly offs and holidays when counting 240 days. In your case, you are eligible to receive gratuity.
From United States ,
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Dear Friend,
If the company is paying a monthly salary that includes the weekly off and holidays, in such a case, the company has to count the weekly off and holidays for a total of 240 days. In your situation, you are eligible to receive gratuity.
Pankaj Shukla
Gurgaon, India
From United States ,
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If the company is paying a monthly salary that includes the weekly off and holidays, in such a case, the company has to count the weekly off and holidays for a total of 240 days. In your situation, you are eligible to receive gratuity.
Pankaj Shukla
Gurgaon, India
From United States ,
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx