I am working in a company in Mumbai and have completed 4 years and 304 days of continious service in this company, I have resgined and am service the notice period. Can the company refuse to give my Grarutity as I have not completed the full 5 years (356 days of service in the 5th year).
From United States, Campbell
From United States, Campbell
167
Dear Sam
Greetings!
Below content is posted by Mr. Michael Nicholas, Hope it will clear your doubt....
what is a year of service under Gratuity act?.
An Year of service means, for the purpose of calculation gratuity, he should have worked for 240 days in that calendar year. For an instance an employee had worked for more 7 years and his no of days worked in each are as follows:
Assume that the total No of days per year is 303 days
1 st year: 300 days
2nd year: 255 days
3rd year: 298 days
4th year: 129 days
5th year: 310 days
6th year: 110 days
7th year : 303 days
Now the employee is eligible for five years since he has not completed 240 days which is the eigible criteria for two years. But normally 99.99% of the companies are not following this.
But application of the Act is extended to those who have completed 4 yrs and 240 days in the fifth year. For calculation purpose the gratuity is calculated in multiplicity of 6 months. That is if an employee completes 6.7 yrs the gratuity is to be calculated for 7 years.
Hope I am clear. (https://www.citehr.com/90519-gratuit...-240-days.html)
Regards
Michael Nicholas
From India, Madras
Greetings!
Below content is posted by Mr. Michael Nicholas, Hope it will clear your doubt....
what is a year of service under Gratuity act?.
An Year of service means, for the purpose of calculation gratuity, he should have worked for 240 days in that calendar year. For an instance an employee had worked for more 7 years and his no of days worked in each are as follows:
Assume that the total No of days per year is 303 days
1 st year: 300 days
2nd year: 255 days
3rd year: 298 days
4th year: 129 days
5th year: 310 days
6th year: 110 days
7th year : 303 days
Now the employee is eligible for five years since he has not completed 240 days which is the eigible criteria for two years. But normally 99.99% of the companies are not following this.
But application of the Act is extended to those who have completed 4 yrs and 240 days in the fifth year. For calculation purpose the gratuity is calculated in multiplicity of 6 months. That is if an employee completes 6.7 yrs the gratuity is to be calculated for 7 years.
Hope I am clear. (https://www.citehr.com/90519-gratuit...-240-days.html)
Regards
Michael Nicholas
From India, Madras
Dear
You are eligible to get gratuity even if you have worked for 4 years & 11 months. The Madras HC in the case of Mettur Beard Sell Ltd Versus RLC has decided the same type of issue. It was held that any employee who completes 240 days of service in a year in the 5th year will be deemed to have continued in service for one year as stipulated by sec. 2(a) of the Payment of Gratuity Act. It was held that an employee who has put in his services for 10 months and 18 days for the 5 year subsequent to first 4 years should be deemed to have completed , continued servcice of 5 years and is entitled for gratuity.
The case was reported as 1998 LLR 1072 (Mad H.C.)
In case you require the copy of judgment I could arrange the same and upload on this thread.
Regards
From India, Ludhiana
You are eligible to get gratuity even if you have worked for 4 years & 11 months. The Madras HC in the case of Mettur Beard Sell Ltd Versus RLC has decided the same type of issue. It was held that any employee who completes 240 days of service in a year in the 5th year will be deemed to have continued in service for one year as stipulated by sec. 2(a) of the Payment of Gratuity Act. It was held that an employee who has put in his services for 10 months and 18 days for the 5 year subsequent to first 4 years should be deemed to have completed , continued servcice of 5 years and is entitled for gratuity.
The case was reported as 1998 LLR 1072 (Mad H.C.)
In case you require the copy of judgment I could arrange the same and upload on this thread.
Regards
From India, Ludhiana
Dear,
You wll get the gratuity but company may refuse to give it as you have not completed 5 years ans you have to go court.
However you can give reference to your company regarding madras high court decision and fight a case against your company(if your company denied it).
Best Regards
Sajid Ansari-Delhi
From India, Delhi
You wll get the gratuity but company may refuse to give it as you have not completed 5 years ans you have to go court.
However you can give reference to your company regarding madras high court decision and fight a case against your company(if your company denied it).
Best Regards
Sajid Ansari-Delhi
From India, Delhi
Thanks for your offer of assistance, I will ask for the judgment copy if the company refuses to give the gratuity. Also thanks to all others for their valuable comments.
From United States, Campbell
From United States, Campbell
Hi,
As per rules, any employee needs to complete 5 years of service to be eligble for gratuity, so company has all the rights not pay you the gratuity if leave the company before completing 5 yrs even if it is shorter by 1 day
From India, Madras
As per rules, any employee needs to complete 5 years of service to be eligble for gratuity, so company has all the rights not pay you the gratuity if leave the company before completing 5 yrs even if it is shorter by 1 day
From India, Madras
Hi,
As per rules, any employee needs to complete 5 years of service to be eligble for gratuity, so company has all the rights not pay you the gratuity if leave the company before completing 5 yrs even if it is shorter by 1 day
From India, Madras
As per rules, any employee needs to complete 5 years of service to be eligble for gratuity, so company has all the rights not pay you the gratuity if leave the company before completing 5 yrs even if it is shorter by 1 day
From India, Madras
Dear Sir,
The Orgn. may deny to provide the gratuity as you have not completed 5 years of service. But fraction of month can be rounded off to month. So it can be assumed that you have completed 5 years services. Law will be in favour of you only. Not in favour of Employer. If 4 years + 7 moths too can be reckoned as 5 years as higher fraction of the year can be rounded to higher or lower depending upon fraction. If it is higher fraction can be rounded to next higher. Just short of 10 days will not injustify you.
Bai,
P.Sathish Kumar
From India, Jaipur
The Orgn. may deny to provide the gratuity as you have not completed 5 years of service. But fraction of month can be rounded off to month. So it can be assumed that you have completed 5 years services. Law will be in favour of you only. Not in favour of Employer. If 4 years + 7 moths too can be reckoned as 5 years as higher fraction of the year can be rounded to higher or lower depending upon fraction. If it is higher fraction can be rounded to next higher. Just short of 10 days will not injustify you.
Bai,
P.Sathish Kumar
From India, Jaipur
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