Hi All,

I want to add one situation for further discussion on Gratuity. If any person worked for, say, 4 and a half years, then as per the Act, he is not eligible for Gratuity. But if he is asked to resign by the company and immediately relieved, then whether he is eligible for Gratuity as he is not going by his will? Also, note that he is not fired for his performance, behavior, etc.

Regards,
Vinod

From India, Kolhapur
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Irrespective of resignation/retirement/termination, if the person does not complete 5 years of continuous service on his or her last working day, he/she will not be eligible for gratuity. The only relaxation for the 5 years of continuous service is in the case of death and partial/full disablement, which do not allow an employee to continue his/her services any further. Only in these two cases, the due gratuity amount is paid to the nominee stated by the person.

Hope this helps.

From India, Mumbai
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Dear All,

While I agree with Ankita ji completely, I would consider the following situation differently in which the employee is not allowed to complete 5 years of service through no fault of his own. If I were the employee, I would demand gratuity. If I were the employer, I would accept such a demand from the employee.


From India, Mumbai
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Hi,

Under the Payment of Gratuity Act, 1972, Section 4 states, "Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service not less than 5 years, on superannuation, retirement, resignation, death, disablement due to accident, or disease. Continuous service of 5 years shall not be necessary where the termination of the employment is due to death or disablement."

Regards,
Srinivas B

From India, Hyderabad
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