I am working in IT company. I completed total 5 years with this firm. In this 5 year i was 1 year in USA on L1 visa. I transferred to USA for short time period and i was reporting to India during that one year period. My question is whether i am still eligible for gratuity? I was on USA payroll during that 1 year time period.
Thank you for replying.
Let me clarify this more to prevent confusion.
I joined the company on 2004 July and I was in USA with the same organisation(on above mentioned condition) between June 2007 to june 2008. I left the organisation on 1st week of August 2009. Now my question is whether
1.) I am eligible for gratuity?
2.) How much gratuity i will get? (means 5years or 4years)
Regards,
Manish
From India, Pune
Thank you for replying.
Let me clarify this more to prevent confusion.
I joined the company on 2004 July and I was in USA with the same organisation(on above mentioned condition) between June 2007 to june 2008. I left the organisation on 1st week of August 2009. Now my question is whether
1.) I am eligible for gratuity?
2.) How much gratuity i will get? (means 5years or 4years)
Regards,
Manish
From India, Pune
If you were on the rolls of the same company for 5 years then only you would be eligible for gratuity. Your deputation/ transfer to US company should have been made on an understanding that the service would not have been interrupted due to such transfer/ deputation.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
Dear Mr.Madhu,
Can an employee eligible for gratuity who has completed 4 years 7 months continuos service?
Gratuity act says if any fraction of months to be adjusted to nearest year.Is this make an employee who completes 4 years and morethan 6 months elgible for gratuity.
Regards,
Keshav Reddy.
From India, Bangalore
Can an employee eligible for gratuity who has completed 4 years 7 months continuos service?
Gratuity act says if any fraction of months to be adjusted to nearest year.Is this make an employee who completes 4 years and morethan 6 months elgible for gratuity.
Regards,
Keshav Reddy.
From India, Bangalore
Dear Keshav,
please read the gratuity act, if an employee worked 4 year and 240 days. then he is eligible for the gratuity (240 days in actual working day)
Mr. madhu is absolutly right, if any employee worked 5 year in a company he is eligible for gratuity, after that he is transfer / deputation to other location (city, contry, or any place if the company is same) then employee in continuty.
Mr. Manish you are the elegible for gratuity.
From India, Chandigarh
please read the gratuity act, if an employee worked 4 year and 240 days. then he is eligible for the gratuity (240 days in actual working day)
Mr. madhu is absolutly right, if any employee worked 5 year in a company he is eligible for gratuity, after that he is transfer / deputation to other location (city, contry, or any place if the company is same) then employee in continuty.
Mr. Manish you are the elegible for gratuity.
From India, Chandigarh
The Payment of Gratuity is to be interpreted as follows:
An employee who has become eligible for gratuity will be paid gratuity at the rate of 15 days salary for every completed year of service. For calculating this 'completed year of service' any fraction of year exceeding six months shall be taken as one year.
This means that if an employee has worked for 5 years and seven months, he will be eligible for six years gratuity and on the other hand, if he has worked for 5 years and four months then he will get gratuity for five years only.
However, there is a High Court judgement which allows gratuity to an employee who had completed four years and 240 days in the fifth year as service. Therefore, service of 240 days in the fifth year is mandatory to determine gratuity payable to an employee.
Regards,
Madhu.T.K
From India, Kannur
An employee who has become eligible for gratuity will be paid gratuity at the rate of 15 days salary for every completed year of service. For calculating this 'completed year of service' any fraction of year exceeding six months shall be taken as one year.
This means that if an employee has worked for 5 years and seven months, he will be eligible for six years gratuity and on the other hand, if he has worked for 5 years and four months then he will get gratuity for five years only.
However, there is a High Court judgement which allows gratuity to an employee who had completed four years and 240 days in the fifth year as service. Therefore, service of 240 days in the fifth year is mandatory to determine gratuity payable to an employee.
Regards,
Madhu.T.K
From India, Kannur
Dear Mr. Madhu,
I have been really longing to post my comment on this subject for a long time since I have noticed that a lot of members in this site is asking the same question (gratuity eligibility for 4 years and 240 days) without getting the proper answer.
Firstly the question of eligibility for gratuity for people working for 4 years and 240 days doesn't arise as the 240 days service in only considered for those who work in seasonal employment and not for those who are working on a regular basis on company payrolls. For them the minimum eligibility of 5 years have to be completed as per the definition of "continuous service" of Gratuity Act.
Secondly, I have noticed that whoever raises this question refers to a judgment given by the Madras high Court of Payment of gratuity for working 4 years and 240 days. Well one needs to know that that judgment is given by the Madras High Court and it will only be applicable within the jurisdiction of Madras high Court and not all over India and only if the merits of the case matches with that case in reference. One must understand that an Award or Judgment given by High Court needs to be ratified by the Government before it is included in the relevant Act and becomes a law for everyone
Eagerly waiting for your views on the above discussion.
Regards
From India, New Delhi
I have been really longing to post my comment on this subject for a long time since I have noticed that a lot of members in this site is asking the same question (gratuity eligibility for 4 years and 240 days) without getting the proper answer.
Firstly the question of eligibility for gratuity for people working for 4 years and 240 days doesn't arise as the 240 days service in only considered for those who work in seasonal employment and not for those who are working on a regular basis on company payrolls. For them the minimum eligibility of 5 years have to be completed as per the definition of "continuous service" of Gratuity Act.
Secondly, I have noticed that whoever raises this question refers to a judgment given by the Madras high Court of Payment of gratuity for working 4 years and 240 days. Well one needs to know that that judgment is given by the Madras High Court and it will only be applicable within the jurisdiction of Madras high Court and not all over India and only if the merits of the case matches with that case in reference. One must understand that an Award or Judgment given by High Court needs to be ratified by the Government before it is included in the relevant Act and becomes a law for everyone
Eagerly waiting for your views on the above discussion.
Regards
From India, New Delhi
Dear ,
I agree with Madhu but want to modify the above mentioned statements:
a) 5 years must be completed then only he/she eligible for gratuity.
b)Regarding the above question 4 year 7 months,not sufficient because 240 working days minimum out of 365/366 days of the year required for eligibility for gratuity for fifth years.
c)Regarding the Madras decision on 240 days working days for fifth year ,yes it is applicable across the India because the court has given the decision under consideration of applicable leaves(earned,sickness & casual etc....),national festival,festival holidays, disaster,raining, strikes,electricity problems,repairing, reactive death,spouse functions,seminars,riots,poor public transport,funerals, etc..... all the facts has been taken from all previous cases from across the India.
From India, Delhi
I agree with Madhu but want to modify the above mentioned statements:
a) 5 years must be completed then only he/she eligible for gratuity.
b)Regarding the above question 4 year 7 months,not sufficient because 240 working days minimum out of 365/366 days of the year required for eligibility for gratuity for fifth years.
c)Regarding the Madras decision on 240 days working days for fifth year ,yes it is applicable across the India because the court has given the decision under consideration of applicable leaves(earned,sickness & casual etc....),national festival,festival holidays, disaster,raining, strikes,electricity problems,repairing, reactive death,spouse functions,seminars,riots,poor public transport,funerals, etc..... all the facts has been taken from all previous cases from across the India.
From India, Delhi
Thank you for replying.
Let me clarify this more to prevent confusion.
I joined the company on 2004 July and I was in USA with the same organisation(on above mentioned condition) between June 2007 to june 2008. I left the organisation on 1st week of August 2009. Now my question is whether
1.) I am eligible for gratuity?
2.) How much gratuity i will get? (means 5years or 4years)
Regards,
Manish
From India, Pune
Let me clarify this more to prevent confusion.
I joined the company on 2004 July and I was in USA with the same organisation(on above mentioned condition) between June 2007 to june 2008. I left the organisation on 1st week of August 2009. Now my question is whether
1.) I am eligible for gratuity?
2.) How much gratuity i will get? (means 5years or 4years)
Regards,
Manish
From India, Pune
Dear Manish
1.Yes you are eligible for gratuity because you were on same company payroll for continues five years.
2. And your gratuity will be calculated as follows :-
Basic salary* 15/26*no. of years of service
Please Note :-
(As Mr. Madhu has also described above)
For calculating this 'completed year of service' any fraction of year exceeding six months shall be taken as one year.
This means that if an employee has worked for 5 years and seven months, he will be eligible for six years gratuity and on the other hand, if he has worked for 5 years and four months then he will get gratuity for five years only.
From India, Delhi
1.Yes you are eligible for gratuity because you were on same company payroll for continues five years.
2. And your gratuity will be calculated as follows :-
Basic salary* 15/26*no. of years of service
Please Note :-
(As Mr. Madhu has also described above)
For calculating this 'completed year of service' any fraction of year exceeding six months shall be taken as one year.
This means that if an employee has worked for 5 years and seven months, he will be eligible for six years gratuity and on the other hand, if he has worked for 5 years and four months then he will get gratuity for five years only.
From India, Delhi
Hi Manish,
To be eligible for Gratuity you need to serve an organisation for a continuous period of 5 years. The court ruling by the Madras High Court has not been ratified by any amendment in the law. the law remains the same and the Madra High court decision is applicable in the particular case.
Mansih has been on on L1 Visa to United States during the period of your employment. In the case of L1 Visa, technically speaking you have been paid by a company outside India under a different contract. there is a break in service and I am afraid you are not elligible for gratuity, unless otherwise you have a document from your employer stating that the period you served in Unites states is considered as continous service.
To be eligible for Gratuity you need to serve an organisation for a continuous period of 5 years. The court ruling by the Madras High Court has not been ratified by any amendment in the law. the law remains the same and the Madra High court decision is applicable in the particular case.
Mansih has been on on L1 Visa to United States during the period of your employment. In the case of L1 Visa, technically speaking you have been paid by a company outside India under a different contract. there is a break in service and I am afraid you are not elligible for gratuity, unless otherwise you have a document from your employer stating that the period you served in Unites states is considered as continous service.
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf