1. If you have worked for more than 240 days in the fifth year of your service, you are entitled to gratuity.
2. Your entitlement to gratuity does not matter on what is/ what is NOT written in your letter of appointment letter. If there are 10 or more employees in the company and you have worked for 5 years at least, then you are entitled to gratuity.
From India, Kolkata
2432. Your entitlement to gratuity does not matter on what is/ what is NOT written in your letter of appointment letter. If there are 10 or more employees in the company and you have worked for 5 years at least, then you are entitled to gratuity.
From India, Kolkata
You are entitled to gratuity once you have completed 4 years and 240 days. However, if the company is deducting the gratuity from your salary, you are still entitled to gratuity. If you have problems in claiming gratuity, please approach Gratuity Inspector, the competent authority, for gratuity.
From India, Mumbai
From India, Mumbai
Dear sir,
i want to prepare a circular for informing all the employee applying gratuity from 01.04.2017 as per our company terms. but i can't understand how write these.
so please suggest me a format to issue formal circular on behalf of company.
I am not HR Expert
From India, Noida
i want to prepare a circular for informing all the employee applying gratuity from 01.04.2017 as per our company terms. but i can't understand how write these.
so please suggest me a format to issue formal circular on behalf of company.
I am not HR Expert
From India, Noida
Hi all,
Please see what Section 4 in The Payment of Gratuity Act, 1972 says:
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:
Word termination is important for considering continuous service. No gratuity shall be payable to employee if s/he resigns of his / her own before completion 5 year of service.
From India, Mumbai
Please see what Section 4 in The Payment of Gratuity Act, 1972 says:
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:
Word termination is important for considering continuous service. No gratuity shall be payable to employee if s/he resigns of his / her own before completion 5 year of service.
From India, Mumbai
Mr Nathrao: Earlier today I spoke to one of my ex Hr Managers who appraised to me saying that 8 months is calculated as 1 year in the Gratuity act so if a employee works for 4 years and 8 months he would be still eligible for Gratuity.
Dear Anish,
WRT statement above I would add that 5 years continuous service as defined in the Act is necessary for claim to gratuity.
Your claim to gratuity does not arise on 241st day of 5 year.(4years.241 days)
Claim arises only on completing 5 years and in last year worker/employee has done 240 days service.
Court orders may be due to a reason or facts in particular case.HR cannot be forced to pay gratuity on basis of a Honble court decision given in other state or earlier.
HR will simply tell the claimant get a court order to this effect in your particular case.
Comments on Indian Laws: METTUR BEARDSELL LTD , Madras vs. REGIONAL LABOUR COMMISIONOR (CENTRAL)-ELIGIBILITY FOR GRATUITY
From India, Pune
Dear Anish,
WRT statement above I would add that 5 years continuous service as defined in the Act is necessary for claim to gratuity.
Your claim to gratuity does not arise on 241st day of 5 year.(4years.241 days)
Claim arises only on completing 5 years and in last year worker/employee has done 240 days service.
Court orders may be due to a reason or facts in particular case.HR cannot be forced to pay gratuity on basis of a Honble court decision given in other state or earlier.
HR will simply tell the claimant get a court order to this effect in your particular case.
Comments on Indian Laws: METTUR BEARDSELL LTD , Madras vs. REGIONAL LABOUR COMMISIONOR (CENTRAL)-ELIGIBILITY FOR GRATUITY
From India, Pune
Gratuity Act is applicable to all employees of an Organisation. It clearly states that if an employee has completed 4 Years and 8 Months then he will be paid gratuity.
Amount is calculated- (Last Basic Salary Drawn/26)*15*No. of Years.
Here no. of years will be 5.
For Reference you can check Gratuity Act.
Note- Amount is Non-taxable upto 20 Lakhs.
From India, Hyderabad
Amount is calculated- (Last Basic Salary Drawn/26)*15*No. of Years.
Here no. of years will be 5.
For Reference you can check Gratuity Act.
Note- Amount is Non-taxable upto 20 Lakhs.
From India, Hyderabad
I started feeling that this forum is not a knowledge gaining platform. Members write any thing without any study. ......... .........................................................................
From India, Mumbai
From India, Mumbai
Please understand that payment of gratuity for service below 5 years i.e 4 years and 240 days is the discretion of the Employer. If a claim for Gratuity is made and rejected by the Employer then the remedy is file a petition before the State designated Gratuity Claims Authority.Then the Authority will decide whether the rejection by the Employer is correct or not.
Dear,
The meaning of gratuity is a ‘A sum of money paid to an employee at the end of a period of employment.’
GRATUITY RULES BY "INDIAN GRATUITY ACT"
According to gratuity act, every employer, who has 10 are more employee, has to follow gratuity law. This law is applicable to government and private sector both. The government also give tax exemption on the gratuity payment.
You will get the gratuity only after the completion of 5 years in the service. Also, there should not be any break in the service. It must be continuous.
Note, the condition of 5 years service has a small relaxation. In the last year, mere service of 240 days would be considered as one year. Hence, You would be eligible for the gratuity after 4 years and 240 days of continuous service.
If are working in an organisation which works for 5 days in a week or less, mere 190 days would be counted as last one year. Therefore, in such case, you would be eligible for the gratuity after 4 years and 190 days.
From India
The meaning of gratuity is a ‘A sum of money paid to an employee at the end of a period of employment.’
GRATUITY RULES BY "INDIAN GRATUITY ACT"
According to gratuity act, every employer, who has 10 are more employee, has to follow gratuity law. This law is applicable to government and private sector both. The government also give tax exemption on the gratuity payment.
You will get the gratuity only after the completion of 5 years in the service. Also, there should not be any break in the service. It must be continuous.
Note, the condition of 5 years service has a small relaxation. In the last year, mere service of 240 days would be considered as one year. Hence, You would be eligible for the gratuity after 4 years and 240 days of continuous service.
If are working in an organisation which works for 5 days in a week or less, mere 190 days would be counted as last one year. Therefore, in such case, you would be eligible for the gratuity after 4 years and 190 days.
From India
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