Continew service in all five years is make apllicable for gratuity . past five years service should not be break up as per standing rule. Thanks Sanjeev Rai
From India, Indore
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From India, Indore
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For claim of gratuity, 5 years should be completed otherwise you are not entitled for gratuity rajvir singh beniwal hrd manager Wings Biotech
From India, Delhi
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1From India, Delhi
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Dear All,
5 years of service is a must to get gratuity. In one case, the Madras High Court has given a judgment that if an individual completes 240 days in the fifth year, then he becomes eligible to get gratuity.
On the basis of one judgment, we cannot override the Payment of Gratuity Act, where it is clearly mentioned in the applicability clause that it is for 5 years. There should be an amendment in the act to make it applicable after 4 years and 240 days. We are just confusing each other without a valid reason.
Can anyone tell where it is written in the act about applicability after 4 years and 240 days in the fifth year? We are just confusing with one judgment of the High Court.
From India, Delhi
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5 years of service is a must to get gratuity. In one case, the Madras High Court has given a judgment that if an individual completes 240 days in the fifth year, then he becomes eligible to get gratuity.
On the basis of one judgment, we cannot override the Payment of Gratuity Act, where it is clearly mentioned in the applicability clause that it is for 5 years. There should be an amendment in the act to make it applicable after 4 years and 240 days. We are just confusing each other without a valid reason.
Can anyone tell where it is written in the act about applicability after 4 years and 240 days in the fifth year? We are just confusing with one judgment of the High Court.
From India, Delhi
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Dear Mr J S Malik,
Its not only Madars High Court but Hon. Supreme Court has also ruled that if an employee has completed 240 days in the 5th year of his service then he is eligible for gratuity.
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
Its true that the Payment of Gratuty Act has not been amended to accomodate the judgemnet of the Hon. Supreme Court but at the same time jugdements passed by Hon'ble Supreme Court of India became law as per Article 141 of Constitution of India.
We should also not forget that when the Payment of Gratuity Act was amended in 2009 to redefine/widen the term "EMPLOYEE", the amendment bill (introduced in Parliament) gave a clear reference to the Supreme Court judgement of 2004 in which the court had widen the definition of the term 'employee'. The act was amended just to accomodate the court ruling.
Not only that though the act was amended and notified in the Gazette of India in 2009, it was effective from 3rd April 1997 just because the case "Ahmedabad Private Primary Teachers' Association vs. Administrative Officer and others" in which the Supreme court gave said judgment was started in 1997.
So we just can't say that members are discussing the topic without any valid reason. Till the act is amended and notified people will keep discussing the topic as the present status of the act on eligibility criteria is confusing. People are taking it both ways.
regards,
Kamal
From India, Pune
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Its not only Madars High Court but Hon. Supreme Court has also ruled that if an employee has completed 240 days in the 5th year of his service then he is eligible for gratuity.
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
Its true that the Payment of Gratuty Act has not been amended to accomodate the judgemnet of the Hon. Supreme Court but at the same time jugdements passed by Hon'ble Supreme Court of India became law as per Article 141 of Constitution of India.
We should also not forget that when the Payment of Gratuity Act was amended in 2009 to redefine/widen the term "EMPLOYEE", the amendment bill (introduced in Parliament) gave a clear reference to the Supreme Court judgement of 2004 in which the court had widen the definition of the term 'employee'. The act was amended just to accomodate the court ruling.
Not only that though the act was amended and notified in the Gazette of India in 2009, it was effective from 3rd April 1997 just because the case "Ahmedabad Private Primary Teachers' Association vs. Administrative Officer and others" in which the Supreme court gave said judgment was started in 1997.
So we just can't say that members are discussing the topic without any valid reason. Till the act is amended and notified people will keep discussing the topic as the present status of the act on eligibility criteria is confusing. People are taking it both ways.
regards,
Kamal
From India, Pune
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Dear friends,
As per Sec. 2A(2)(a)(ii) of The Payment of Gratuity Act, an employee who worked for 240 days in a year is eligible for gratuity. The High Court of Madras decision (1998 LLR 1072 MADRAS) in this regard is attached.
From India, Hyderabad
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As per Sec. 2A(2)(a)(ii) of The Payment of Gratuity Act, an employee who worked for 240 days in a year is eligible for gratuity. The High Court of Madras decision (1998 LLR 1072 MADRAS) in this regard is attached.
From India, Hyderabad
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Dear Mr Kamal
i agree with your all interpretations and judgement but till the time there is no amendment in act ,applicabliy remains 5 years .even LIC which ishaving major share for gratuity policy,does not pay if it is less than five years.
As case of interpretation of continious servce after 240 days ,absolutely agree for the same.As of now it is not mentioned in act no one pay before completing 5 years.
From India, Delhi
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i agree with your all interpretations and judgement but till the time there is no amendment in act ,applicabliy remains 5 years .even LIC which ishaving major share for gratuity policy,does not pay if it is less than five years.
As case of interpretation of continious servce after 240 days ,absolutely agree for the same.As of now it is not mentioned in act no one pay before completing 5 years.
From India, Delhi
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Dear Shri Ahankari Ji,
The Payment of Gratuity Act, 1972, was amended in 2010 to include teachers in the definition of employees. Now, all teachers are eligible for the payment of gratuity.
Thanks & regards,
From India, Pune
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The Payment of Gratuity Act, 1972, was amended in 2010 to include teachers in the definition of employees. Now, all teachers are eligible for the payment of gratuity.
Thanks & regards,
From India, Pune
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I need help in the matter of whether Gratuity is secured or not. This information is required for the purpose of claim settlement in relation to the liquidation or winding up of a company. If there is any relevant judgement, please provide a reference.
Deepak,
9826279399
From India, Mumbai
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Deepak,
9826279399
From India, Mumbai
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Dear Mr. Kamal P Sinha,
Can we have the scanned copy of the Hon. Supreme Court Judgment confirming that if the employee has worked for 240 days in the 4th year, he is eligible for gratuity?
Thanks, and an early response will be appreciated.
Ganesh
From India, Mumbai
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Can we have the scanned copy of the Hon. Supreme Court Judgment confirming that if the employee has worked for 240 days in the 4th year, he is eligible for gratuity?
Thanks, and an early response will be appreciated.
Ganesh
From India, Mumbai
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@ Ganesh...
I do not have the original scanned copy of the SC judgment. If you want the same, please apply for a certified copy giving case number details from the copying branch of the SC.
Alternatively, please go through the law book "The Payment of Gratuity Act, 1972" published by Law Publishers Pvt. Ltd., 18A-S.P. Marg, Post Box-1077, Allahabad-211 001.
From India, Pune
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I do not have the original scanned copy of the SC judgment. If you want the same, please apply for a certified copy giving case number details from the copying branch of the SC.
Alternatively, please go through the law book "The Payment of Gratuity Act, 1972" published by Law Publishers Pvt. Ltd., 18A-S.P. Marg, Post Box-1077, Allahabad-211 001.
From India, Pune
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