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
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
Dear All
5 years service is must to get gratuity.in one case madras high court has given judgement that if inidivisual
completes 240 day in fifth year than he becomes eligibleto get gratuity.
on the basis of one judgement we can not over rule payment of gratuity act where clearly mentioned in applicablity clause 5
years.there should amendment in act to make it 4years 240 days applicablity.
we are just confusing each other with out valid reason.
Can anyone tell where written in act appicablity after 4 years& 240 days in fifth year .we are just confusing with one judgement of high court.

From India, Delhi
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
dear friends
as per Sec. 2A (2)(a)(ii) of The Payment Gratuity Act, an employee, who worked for 240 days in an year is eligible for gratuity.
High Court of Madras decision (1998 LLR 1072 MADRAS) in this regard is attached

From India, Hyderabad
Attached Files (Download Requires Membership)
File Type: pdf Madras High Court _ Gratuity Judgement[1].pdf (1.55 MB, 174 views)

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
Dear Shri Ahankari Ji,
The Payment of Gratuity Act, 1972 has been amended in the year 2010 to include teachers in the definition of employee. Now all teachers are eligible for payment of gratuity. Thanks & regards,

From India, Pune
I need help in the matter that Gratuity is secured right or not, this is required for the purpose of claim settlement in respect of Liquidation /winding up company. If any judgement, pls refer.
Deepak,
9826279399

From India, Mumbai
Dear Mr. Kamal P Sinha
Can we have the scanned copy of Hon. Supreme Court Judgment confirming that if the employee has worked for 240 days in the 4th year, he is eligible for gratuity.
Thanks & an early response will appreciated.
Ganesh

From India, Mumbai
@ Ganesh...
I do not have the original scanned copy of SC judgement. If you want the same plz apply for a certified copy giving case no. details from the copying branch of the SC.
or plz 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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