Dear Citemates
Greeting for you all !!!
Recently I have joined this Cite and found so many interesting and knowledgeable discussions. I am very much pleased and really glad of you.
Here I am having a doubt on Gratuity Eligibility
Gratuity Act says, employee should complete minimum 5 years of service for eligibility and he/she should work for minimum 240 days a year(including the days of declared holidays and leave with wages) for claiming the gratuity for that year.
If an employee worked for 4 years and In 5th year not worked for 12 calendar month, but completes 240 days of working within 10 months and quits.
Is the employee eligible for Gratuity ?
Is the employer have right to deny the gratuity for not completing 5 years?
expecting ur valuable replay!!
Regards
Naveen.M
From India
2Greeting for you all !!!
Recently I have joined this Cite and found so many interesting and knowledgeable discussions. I am very much pleased and really glad of you.
Here I am having a doubt on Gratuity Eligibility
Gratuity Act says, employee should complete minimum 5 years of service for eligibility and he/she should work for minimum 240 days a year(including the days of declared holidays and leave with wages) for claiming the gratuity for that year.
If an employee worked for 4 years and In 5th year not worked for 12 calendar month, but completes 240 days of working within 10 months and quits.
Is the employee eligible for Gratuity ?
Is the employer have right to deny the gratuity for not completing 5 years?
expecting ur valuable replay!!
Regards
Naveen.M
From India
As employee was present 240 days,therefore he is eligible for GRATUITY even if s/he had not completed entire 12 months in 5th year. regards vikram
From India, Pune
From India, Pune
Dear Naveen, Welcome to citehr family. Congratulations on your maiden posting. Yes he is eligible for gratuity. Refer the attached file. S.Sethupathy, Erode.
From India, Selam
From India, Selam
Dear All,
In continuation to above discussion, I have query.
(1) If an employee has worked for 10 years but has not completed services of 240 days in any year, then whether he is eligible to get gratuity. If yes, please quote under which proviso of the Act and any supporting citation, if any.
(2) Can we pay gratuity every month under CTC? Is it legal? Because reading the sections of the Act, there is no such proviso. Also there is a risk as if an employee quits the job after 3/4 year, then technically he is not entitled for gratuity. So my query is can we dilute our liability of gratuity by making monthly payment of the same.
Please give your expert opinion, suggestion and views on the above.
Thanks in advance,
NIRAJ SHAH
From India, Bhopal
In continuation to above discussion, I have query.
(1) If an employee has worked for 10 years but has not completed services of 240 days in any year, then whether he is eligible to get gratuity. If yes, please quote under which proviso of the Act and any supporting citation, if any.
(2) Can we pay gratuity every month under CTC? Is it legal? Because reading the sections of the Act, there is no such proviso. Also there is a risk as if an employee quits the job after 3/4 year, then technically he is not entitled for gratuity. So my query is can we dilute our liability of gratuity by making monthly payment of the same.
Please give your expert opinion, suggestion and views on the above.
Thanks in advance,
NIRAJ SHAH
From India, Bhopal
Dear Sir
Please section 2(c) of the Payment of Gratuity Act. This contains the answer to your query. Before deciding whether the employee is entitled to gratuity or not I would request you to furnish the following information for every year
1. Number of days the employee had actually worked.
2. Number of days the employee did not work due to sickness
3. Number of days the employee did not work due to accident
4. Number of days the employee did not work due to leave
5. Number of days the employee did not work due to lay-off
6. Number of days the employee did not work due to strike or lock out which was not due to his fault.
7. In all the cases referred to from serial number 2 to serial number 6 did the employer pass an order in writing informing the employee that the absence due to sickness etc., would constitute a break in service for computing the continuous service.
If you furnish the above information I may be able to give my views.
From India, Madras
Please section 2(c) of the Payment of Gratuity Act. This contains the answer to your query. Before deciding whether the employee is entitled to gratuity or not I would request you to furnish the following information for every year
1. Number of days the employee had actually worked.
2. Number of days the employee did not work due to sickness
3. Number of days the employee did not work due to accident
4. Number of days the employee did not work due to leave
5. Number of days the employee did not work due to lay-off
6. Number of days the employee did not work due to strike or lock out which was not due to his fault.
7. In all the cases referred to from serial number 2 to serial number 6 did the employer pass an order in writing informing the employee that the absence due to sickness etc., would constitute a break in service for computing the continuous service.
If you furnish the above information I may be able to give my views.
From India, Madras
I have worked in MNC company for four years and ten months continuously without any break and left due to personal reasons. I have not been given gratutiy benefits saying that I have not completed five years as per gratutiy act. They have infromed me that they have tie up with LIC for gratituty and couldnot provide me the gratutiy as per the agreement with LIC . Can you please calrify whether I am eligible for gratituty and if yes under what section or rule it is eligible.
Regards
M.Saravanan
From India, Coimbatore
Regards
M.Saravanan
From India, Coimbatore
Dear M Saravanan
You have an option to approach LIC of India for your gratuity claim, this claim is required to be executed and presented through your last employer. As such you have already completed 4 years and have completed 240 days in the fifth year, hence you are eligible for gratuity. Go ahead and claim your gratuity. Good luck to you.
Regards
R B Yadav
Advocate
From India, Mumbai
You have an option to approach LIC of India for your gratuity claim, this claim is required to be executed and presented through your last employer. As such you have already completed 4 years and have completed 240 days in the fifth year, hence you are eligible for gratuity. Go ahead and claim your gratuity. Good luck to you.
Regards
R B Yadav
Advocate
From India, Mumbai
Dear Mr.Yadav,
Thanks for your guidance. I have recieved gratutity from my employer thro LIC though I have completed 4 years and 10 months. LIC Chennai region has been sanctioning already and now LIC Mumbai region is also started processing such cases.
Thanks to HR Site team
Regards
M.Saravanan
From India, Coimbatore
Thanks for your guidance. I have recieved gratutity from my employer thro LIC though I have completed 4 years and 10 months. LIC Chennai region has been sanctioning already and now LIC Mumbai region is also started processing such cases.
Thanks to HR Site team
Regards
M.Saravanan
From India, Coimbatore
an employee has worked for 7 years but not completed 240 days in 3 years. Also in beteween these period he has stopped coming for one month. whether it can be called as breaking of service? whether he is entitled for gratuity? His presence is 116.5 for the year 2006, 160.5 for the year 2007, 2008 to 2011 more than 240 but again in 2012 presence is 199. Please guide.
From India, Surat
From India, Surat
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc