No you are not eligible as you have not finished 5 years.
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From India, Mumbai
86New Blog on health - Health Beauty Fitness
From India, Mumbai
Dear Friend,
As per Gratuity Act if an employee works for a continuous service for 5 years , he is entitled to receive gratuity.But one must understand what is continuous service and how it is to be calculated.
CONTINUOUS SERVICE Sec 2A -An employee shall be said to be in continuous service for a period if he has,for that period, been in uninterrupted service,including service which may be interrupted on account of sickness,accident,leave,absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay off,strike or a lock out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
It further provides that if an employee works for not less than 240 days in a year,it will be treated as one year for the purpose of Gratuity calculation.
In view of the above, you will not be entitled to receive gratuity assuming you have completed 4 years 6 month only.You are compelled to leave the company since the company is downsizing its manpower and or closing down the establishment/Factory due to recession,
you may secretly talk to the labour department to decide future course of action. I don't know as to whether you have submitted your resignation or company has issued you a letter to leave the company.If the company has issued you letter saying you resign from the service then you may contest the matter to take a chance taking up the matter with the labour department.
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, Mb:9830023706
From India, Calcutta
As per Gratuity Act if an employee works for a continuous service for 5 years , he is entitled to receive gratuity.But one must understand what is continuous service and how it is to be calculated.
CONTINUOUS SERVICE Sec 2A -An employee shall be said to be in continuous service for a period if he has,for that period, been in uninterrupted service,including service which may be interrupted on account of sickness,accident,leave,absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay off,strike or a lock out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
It further provides that if an employee works for not less than 240 days in a year,it will be treated as one year for the purpose of Gratuity calculation.
In view of the above, you will not be entitled to receive gratuity assuming you have completed 4 years 6 month only.You are compelled to leave the company since the company is downsizing its manpower and or closing down the establishment/Factory due to recession,
you may secretly talk to the labour department to decide future course of action. I don't know as to whether you have submitted your resignation or company has issued you a letter to leave the company.If the company has issued you letter saying you resign from the service then you may contest the matter to take a chance taking up the matter with the labour department.
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, Mb:9830023706
From India, Calcutta
Dear All,
Please help in gratuity calculations.
An employee has worked for 5 years 6 months but in-between this duration employee has taken 2 months leave which was LWP , wat should we consider in number of years during calculation of gratuity.
regards
Anu
From India, New Delhi
Please help in gratuity calculations.
An employee has worked for 5 years 6 months but in-between this duration employee has taken 2 months leave which was LWP , wat should we consider in number of years during calculation of gratuity.
regards
Anu
From India, New Delhi
Dear Ms. Anuagarwal,
Even after adjustment since the employee concerned has completed the eligible level he/she should be paid for the number of days he/she earned a salary.
And please also note that this employees has to be then paid for 5 years 4 months, calculating the half last drawn basic salary for 26 working days (each month) X 64 months, to be fair indeed.
Warm regards,
TSK. Raman
From India, Hyderabad
Even after adjustment since the employee concerned has completed the eligible level he/she should be paid for the number of days he/she earned a salary.
And please also note that this employees has to be then paid for 5 years 4 months, calculating the half last drawn basic salary for 26 working days (each month) X 64 months, to be fair indeed.
Warm regards,
TSK. Raman
From India, Hyderabad
Hi, On completion of 240 working days every year and also in the 5th year if any employee completes 240 days then he is eligible for Gratuity. Thanks Sirisha
From India, Hyderabad
From India, Hyderabad
Employee actual DOJ is inAugust 2008 and how can we pay for 64 months either we have to pay for 5 yrs OR 6 yrs. suggest Regards Anu
From India, New Delhi
From India, New Delhi
Dear Anu Agarwal,
You say, employee actual DOJ was August 2008 and you are asking, "how can we pay for 64 months? " and you are adding either we have to pay for 5 yrs OR 6 yrs.
There is no suggestion in any book of law that it gets paid for only blocks of 5, 6, or 7 and the best method suggested is pay for the service period,
Trust this clarifies the issue.
Warm regards,
TSK. Raman
From India, Hyderabad
You say, employee actual DOJ was August 2008 and you are asking, "how can we pay for 64 months? " and you are adding either we have to pay for 5 yrs OR 6 yrs.
There is no suggestion in any book of law that it gets paid for only blocks of 5, 6, or 7 and the best method suggested is pay for the service period,
Trust this clarifies the issue.
Warm regards,
TSK. Raman
From India, Hyderabad
In your case gratuity is not claimable as you completed 4.6 yrs. Employee who completes 5 yrs are eligible for gratuity.
Eg:
1. if an employee resigns in in 4.10 months, not eligible for gratuity.
2. If an employee dismissed in 4.10 months, company will not give gratuity. But in court if employee wins , he can claim gratuity, as the dismissal was fault(but only subjected to considering many facts)
From India, Chennai
Eg:
1. if an employee resigns in in 4.10 months, not eligible for gratuity.
2. If an employee dismissed in 4.10 months, company will not give gratuity. But in court if employee wins , he can claim gratuity, as the dismissal was fault(but only subjected to considering many facts)
From India, Chennai
as far as concerned about the payment of gratuity for 4 year & 6 months, you have already got number answer as you will not be eligible for gratuity, but yes if you could have completed 240 days in 5th than your case may be qualify for payment.
Second part of your query is not replied by any member, for other compensation you are eiligible. it depends on the work profile and the nature of job.
if you are in a managerial or supervisor/administrator category than the payment shall be according to your employment agreement.
But in case you are not employed in Managerial or supervisor/administrative capacity than you shall also be entitled for retrenchment benefit under Industrial Dispute Act, that shall be 15 days wages per year for completed year of service.
even otherwise if you are working in IT/ITES company, you can claim for the same. Few State Shop Act also provide the retrenchment compensation like AP, TN etc. and the question of applicability of ID Act, is a matter of debate.
But if you will claim can succeed.
Second part of your query is not replied by any member, for other compensation you are eiligible. it depends on the work profile and the nature of job.
if you are in a managerial or supervisor/administrator category than the payment shall be according to your employment agreement.
But in case you are not employed in Managerial or supervisor/administrative capacity than you shall also be entitled for retrenchment benefit under Industrial Dispute Act, that shall be 15 days wages per year for completed year of service.
even otherwise if you are working in IT/ITES company, you can claim for the same. Few State Shop Act also provide the retrenchment compensation like AP, TN etc. and the question of applicability of ID Act, is a matter of debate.
But if you will claim can succeed.
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx