Hi ,
Please note that the person will not be eligible to avail gratuity since he has not completed 5 years of continous service. Even if he did , when person is terminated the employer has the right to forfeit his gratuity wholly or partially .
The respective sections are given below.
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited]¬ -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Hope this helps
Kirti
From India, Bangalore
Acknowledge(0)
Amend(0)
14Please note that the person will not be eligible to avail gratuity since he has not completed 5 years of continous service. Even if he did , when person is terminated the employer has the right to forfeit his gratuity wholly or partially .
The respective sections are given below.
Section: 4
Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited]¬ -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Hope this helps
Kirti
From India, Bangalore
Acknowledge(0)Amend(0)
Please clarify whether gratuity is payable in the following case:
First Year - 240 days completed
Second Year - 240 days completed
Third year - 240 days NOT completed
Fourth year - 240 days completed
Fifth year - 240 days completed
Sixth year - 240 days completed
From India, Pune
Acknowledge(0)Amend(0)
First Year - 240 days completed
Second Year - 240 days completed
Third year - 240 days NOT completed
Fourth year - 240 days completed
Fifth year - 240 days completed
Sixth year - 240 days completed
From India, Pune
Acknowledge(0)Amend(0)
Dear all,
I learned the Gratuity calculation from one of our Cite HR friends, so I'm just explaining that again. "Gratuity is paid for Good Gratitude."
1. If an employee has completed 5 years of continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement - 15 days' salary for each completed year of service or part thereof.
3. Salary = Basic Salary + D.A.
4. As per the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows:
Formula: Salary x number of completed years of service x 15/26
For example:
Salary = Rs. 5000 (Basic + D.A.)
Period of service: 6 years 6 months 15 days
Completed years of service: 7 years
Gratuity = Rs. 5000 x 7 x 15/26 = Rs. 20,192/
Thank you.
From India, Cuttack
Acknowledge(0)Amend(0)
I learned the Gratuity calculation from one of our Cite HR friends, so I'm just explaining that again. "Gratuity is paid for Good Gratitude."
1. If an employee has completed 5 years of continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement - 15 days' salary for each completed year of service or part thereof.
3. Salary = Basic Salary + D.A.
4. As per the Payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows:
Formula: Salary x number of completed years of service x 15/26
For example:
Salary = Rs. 5000 (Basic + D.A.)
Period of service: 6 years 6 months 15 days
Completed years of service: 7 years
Gratuity = Rs. 5000 x 7 x 15/26 = Rs. 20,192/
Thank you.
From India, Cuttack
Acknowledge(0)Amend(0)
Dear Kirti,
Forfeiture of gratuity is possible only when an employee is dismissed from service for gross negligence or for such gross misconduct involving moral turpitude. Though the terminology used in the Payment of Gratuity Act is termination, an employee does not become ineligible for gratuity if his service is terminated for any other reasons as provided in the Act, like causing damage to property, severe misconduct, etc.
Regards,
Madhu T.K
From India, Kannur
Acknowledge(0)Amend(0)
Forfeiture of gratuity is possible only when an employee is dismissed from service for gross negligence or for such gross misconduct involving moral turpitude. Though the terminology used in the Payment of Gratuity Act is termination, an employee does not become ineligible for gratuity if his service is terminated for any other reasons as provided in the Act, like causing damage to property, severe misconduct, etc.
Regards,
Madhu T.K
From India, Kannur
Acknowledge(0)Amend(0)
Sir, the attached file is corrupted can u send the file again. Regards Anshu Kumari HR Executive
From India, Gurgaon
Acknowledge(0)Amend(0)
From India, Gurgaon
Acknowledge(0)Amend(0)
Gratuity will be given to the persons who completed 5 yrs of service,besides he/she should work for at least 240 days(190 days in case of working below ground) in each year.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi, first of all, continuous service of 5 years is a must for gratuity.
Secondly, regarding Madhu's opinion, I would like to mention that in a particular case, the Madras High Court has held that an employee, regarding continuous service for a period of 240 days in a year, is deemed to have continuous service for 1 year as stipulated by Section 2A of the Act. However, the High Court distinguished the earlier ruling of the Andhra Pradesh High Court where it was held that an employee who has worked for 4 years, 11 months, and 10 days, without completing 5 years of service, will not be entitled to gratuity. For reference, please see Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras, 1998 LLR 1072.
Experts, I need your opinion.
Ratikanta Rath (HR Manager)
From India, Angul
Acknowledge(0)Amend(0)
Secondly, regarding Madhu's opinion, I would like to mention that in a particular case, the Madras High Court has held that an employee, regarding continuous service for a period of 240 days in a year, is deemed to have continuous service for 1 year as stipulated by Section 2A of the Act. However, the High Court distinguished the earlier ruling of the Andhra Pradesh High Court where it was held that an employee who has worked for 4 years, 11 months, and 10 days, without completing 5 years of service, will not be entitled to gratuity. For reference, please see Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras, 1998 LLR 1072.
Experts, I need your opinion.
Ratikanta Rath (HR Manager)
From India, Angul
Acknowledge(0)Amend(0)
Dear Jyoti,
As per The Gratuity Act, any person who dies before completing his 5-year tenure with a company, his nominee is entitled to receive the gratuity. However, in the case of termination before 5 years, he will not be entitled to gratuity.
Best Regards,
Shikha Agarwal
From India, Bangalore
Acknowledge(0)Amend(0)
As per The Gratuity Act, any person who dies before completing his 5-year tenure with a company, his nominee is entitled to receive the gratuity. However, in the case of termination before 5 years, he will not be entitled to gratuity.
Best Regards,
Shikha Agarwal
From India, Bangalore
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf