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waliajagmohansingh@yahoo.com
3

If strength of the employees reduces from 10 to 9 during year. Kindly let me know if applicabilty of Gratuity Act continues or not.
From India, Chandigarh
loginmiraclelogistics
1073

Dear friends,
The subject matter was discussed in the forum many a time and members can check back those posts for more clarity on the issue of 4yrs & 240 days in the 5th year which is very much legal.
And these attachment will help you to understand this best.

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: doc 240 days Gratuity Act-Case Law.doc (74.0 KB, 100 views)
File Type: doc Gratuity - 4yrs 8months.doc (37.5 KB, 101 views)
File Type: pdf Gratuity - Madras HC judg[1][1]..pdf (1.46 MB, 67 views)

dinesh2205
9

Dear All,
Court gives judgement in various cases and these judgements can be only considered when act is not clear.
Judgements are given on circumstance of the case.Gratuity act clearly mention in applicablity clause that gratuity is applicable
only after completion of five years.
For eligibility of gratuity you have to serve for 5 years.
Most of them are referring to Madras High court judgement for 4 yrs and 240 days. It cannot be applicable to all. If everyone is referring to that means there is a judgement in P.Raghuvulua an sons Vs. Additional Labour court (1985) where an employee who has served for 4yrs and 11 months and 10 days is not eligible for gratuity.
Regards,
Dinesh

From India, Wardha
9871103011
455

Dear Jagmohan,
As regards to your query as to what "'If strength of the employees reduces from 10 to 9 during year" is concerned, the applicabilty of Payment of Gratuity Act,1972 continues in that situation in view of the Section 1(3A) of the Act which was inserted by an Act 26 of 1984. Section 1(3A) of Payment of Gratuity Act,1972 reads as under:-
1(3A)- A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.
BS Kalsi
Member since Aug 2011

From India, Mumbai
korgaonkar k a
2556

Dear Rakesh ji,
Answers to your queries undoubtedly,
YES
YES
Normally I do not respond once the correct answer is given by any of the members unless there is any value addition to it. still in your case I thought of responding here to you in very specific way as above.
Dear All,
As regards to gratuity on 4 years and 240 days in fifth year of service, we had many discussions earlier. Views on this issue may differ by individual to individual. I am with the view by member Dinesh2205.

From India, Mumbai
loginmiraclelogistics
1073

Dear friends, Pl.go thro' the attached notes compiled from various sources.
From India, Bangalore
Attached Files (Download Requires Membership)
File Type: doc Gratuity - 4yrs 240 days.doc (34.5 KB, 287 views)

MRC Management Services Pvt Ltd
Dear Sir, Refer to your query, herewith I am forwarding the Judgement of Madras High Court, Pl may be reffered the same, This case will resolve your query
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf Gratuity -Madras High Court Judgement.pdf (278.5 KB, 233 views)

uda91864
19

It is correct that the eligibility of gratuity is 5 years of completed service. and this is also correct that the services of more than 6 month will be consider for completion of the corresponding year.
From India, Faridabad
korgaonkar k a
2556

Dear Kumar ji & MRC management,
I am well aware of the judgement. Still I have different views and the same are well discussed earlier.
I say that Gratuity is an award by company to the employee for his long service. Minimum service is clearly mentioned in the Act in section 4(1).

From India, Mumbai
korgaonkar k a
2556

It is a separate question and not connected to current discussion. Such kind of question in between any discussion disturb the entire discussion and also gives wrong impression many time.
I also got confused today when I started reading the discussion from top of the page but then realized that I am on second page.
My request to the queriest to ask his question in new thread. I will reply there.
The moderators can delete or shift such kind of questions. May I request the moderators for the same?

From India, Mumbai
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