for getting gratuity benifit 5 years of continous service with same emplyoer are necessary. so mr. vijay u r not eligible for getting gratuity.
From India, Pune
From India, Pune
Dear Arif
I tend to agree with Mr. Malik's comments.
What you are indicating is correct, as per the developments and interpretation of Court.
But what you do not understand, may be due to your lack of experience; is that what Mr. Malik is pointing out is the REALITY and the practical aspect.
ou should be aware that whenever a benefit is to be given, many pvt. sector companies with hardly any regard for Ethics or Corporate Governance or natural justice; hardly ever pay the rightful dues of employees/ex-employees.
As a matter of fact, no pvt sector company (as rightly pointed out by Mr. Malik - though there can be a few exceptions) pays gratuity to an ex-employee unless :
- he has completed full five years of service
- they are forced to pay by virtue of a Labour Court order (in rarest of rare cases)
What to talk of gratuity, are you aware that one has to struggle to get even Earned Leave encashment ?
Your enthusiasm is commendable, but my friend, the reality is really deplorable.
Regards.
From India, Delhi
1426I tend to agree with Mr. Malik's comments.
What you are indicating is correct, as per the developments and interpretation of Court.
But what you do not understand, may be due to your lack of experience; is that what Mr. Malik is pointing out is the REALITY and the practical aspect.
ou should be aware that whenever a benefit is to be given, many pvt. sector companies with hardly any regard for Ethics or Corporate Governance or natural justice; hardly ever pay the rightful dues of employees/ex-employees.
As a matter of fact, no pvt sector company (as rightly pointed out by Mr. Malik - though there can be a few exceptions) pays gratuity to an ex-employee unless :
- he has completed full five years of service
- they are forced to pay by virtue of a Labour Court order (in rarest of rare cases)
What to talk of gratuity, are you aware that one has to struggle to get even Earned Leave encashment ?
Your enthusiasm is commendable, but my friend, the reality is really deplorable.
Regards.
From India, Delhi
ELIGIBILITY FOR GRATUITY CLAIM :
· 5 years minimum service is required to get gratuity.
· In one case madras high court has given judgement that if someone has completed 240 days in fifth year he should be entitled for gratuity . As there is no amendment in act so eligibly stands 5 years,
MADRAS HIGH COURT :
· Reference of this case is
Mettur beardsell ltd, Madras vs Regional Labour Commissioner(central), Madras,1998 LLR1072
(Madras high court).
-regards
kangeyan
From India, Madras
· 5 years minimum service is required to get gratuity.
· In one case madras high court has given judgement that if someone has completed 240 days in fifth year he should be entitled for gratuity . As there is no amendment in act so eligibly stands 5 years,
MADRAS HIGH COURT :
· Reference of this case is
Mettur beardsell ltd, Madras vs Regional Labour Commissioner(central), Madras,1998 LLR1072
(Madras high court).
-regards
kangeyan
From India, Madras
Mr. Vijay,
Gratuity is payable only after completion of five years of continuous service with single employer. The amount is calculated as per service with the employer as completion of five years of service and part thereof (Six months and above service shall be calculated as full year of service)
The settlement of gratuity is depends of the funds management. If it managed by company, then it is in the hands of management to settle. If the funds are managed by LIC or any others, then it takes more than a month for settlement.
In your case you are just short of two completed months to eligible for Gratuity. So you are not eligible to claim the fund.
with warm regards,
T.Kumar
From India, Madras
Gratuity is payable only after completion of five years of continuous service with single employer. The amount is calculated as per service with the employer as completion of five years of service and part thereof (Six months and above service shall be calculated as full year of service)
The settlement of gratuity is depends of the funds management. If it managed by company, then it is in the hands of management to settle. If the funds are managed by LIC or any others, then it takes more than a month for settlement.
In your case you are just short of two completed months to eligible for Gratuity. So you are not eligible to claim the fund.
with warm regards,
T.Kumar
From India, Madras
Hi,
In my view the official is elegible for Gratuity due to the definition of Section 2A, which is as follow:
Section: 2A
Continuous service.
For the purposes of this Act, -
(1) 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 order, 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.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.[/I]
From India, New Delhi
In my view the official is elegible for Gratuity due to the definition of Section 2A, which is as follow:
Section: 2A
Continuous service.
For the purposes of this Act, -
(1) 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 order, 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.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation: For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which -
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicab1c to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.[/I]
From India, New Delhi
there is as no such word called feeling in law:the company has to follow the rules and regulations according to gratuity act 1972
From India, Gurgaon
From India, Gurgaon
Thanks all for the comments. Many of you talked about general practice of companies to give gratuity on competion of 5 years. But do we have cases where employee got gratuity for 4 years 240 days ?
From India, Gurgaon
From India, Gurgaon
You are not eligibile. For eligibility 5 years should be completed. There is no grace period for the eligibily.
From India, Pune
From India, Pune
Chandratre,
If we see Madras High Court Judgment - 1998 LLR 1072. It has clarified on Continuous service for 5th year and 4 years 240 days is accepted for Gratuity claim.
I know employer is going to refer only act which does not clarify above and act has not be amended for 5th year round off.
From India, Gurgaon
If we see Madras High Court Judgment - 1998 LLR 1072. It has clarified on Continuous service for 5th year and 4 years 240 days is accepted for Gratuity claim.
I know employer is going to refer only act which does not clarify above and act has not be amended for 5th year round off.
From India, Gurgaon
dear vijay
earlier A P high court given the judgement that five year service is must to be eligible for gratuity,so why one who is sitting in andhra
should follow the madras high court judgement when he can save his skin from AP high court judgement.if we intrpret the law ,i
agree that in fifth year 240 days makes one eligible for gratuity.
but till the time it will not be amended in act ,no employer is going to pay it.
tks
j s malik
From India, Delhi
earlier A P high court given the judgement that five year service is must to be eligible for gratuity,so why one who is sitting in andhra
should follow the madras high court judgement when he can save his skin from AP high court judgement.if we intrpret the law ,i
agree that in fifth year 240 days makes one eligible for gratuity.
but till the time it will not be amended in act ,no employer is going to pay it.
tks
j s malik
From India, Delhi
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Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc