I am in working in a private limited company which follows a five day working week for 4 years 8 months and 20 days. Am I eligible for Gratuity payment on resignation? Regards, Indradeb
From India, Bangalore
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According to the Payment of Gratuity Act, 1972 and Rules, an employee is eligible for receiving gratuity after completing five years in an organization. On the other hand, if a worker has worked for 240 days in a year, the year is considered complete. It does not matter whether there are six working days in a week or five. In my opinion, after completing a period of five years, you will be entitled to receive the benefit of gratuity, whether you continue working or not.

(G. K. Sharma)


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You are not eligible for gratuity since you have not completed 5 years. The question of 240 days comes into the picture for deciding whether an employee was on continuous service or not. As such, a person who had worked for 240 days (above the ground or 190 days below the ground) in a year is deemed to have continuous service for that year.

The provisions relating to a six-day week and 190 days of work were provided after the ruling by the apex court in Lalappa Lingappa Vs Laxmi Vishnu Textiles Mills, Sholapur, to safeguard the interests of those employees who would be denied gratuity for want of a minimum of 240 days in between the years. Here also completion of 5 years is mandatory. Once eligible for gratuity, if in any year one has not worked for 240 days, that year can be counted as continuous provided he was working for at least six days in a week and had worked at least for 190 days in the preceding year.

Regards, Madhu.T.K

From India, Kannur
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jeeni
12

Dear,

The gratuity is only payable after 5 years based on the latest amount of Basic and DA. You have to provide continuous service for that, i.e., without any absences, but you can take your holidays.

I hope this information will help you more.

Regards,
Ranjeet (Jeeni)

From India, New Delhi
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No, you should have to complete five years of continuous service for eligibility for gratuity. The number of working days doesn't matter for eligibility, even if it's a '5-day week.' However, for continuous service, 240 working days should be counted for every completed year of service.

In your case, if you are relieved after more than three months, then you could have the right to gratuity, which can be payable for five years of service.

Atul S. Malve
Pune

From India, Sholapur
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Dear Inderdeb,

I have gone through your queries. As per the Gratuity Act, you have not completed 5 years, so you are not eligible for gratuity. For gratuity, you should have worked for five years, and only then you are entitled to it.

From India, Lucknow
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To: Mr. Madhu T.K. Sir,

I am facing a case regarding gratuity in my company. An employee left on completion of his service period for 4 years and 9 months. As per the order of the Kerala High Court (the document is not with me), any employee is eligible for gratuity after completing 4 years and 8 months. Is this correct? Please assist me with this matter.

Regards,
Swarnali Banerjee

From India, Madras
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entitlement of gratuity is only after complition of 5 year continuas service and 240 days is the minimum working condition per year to establish the contineous service of fi ve years
From India, Chandigarh
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Hi,

Gratuity is applicable after completion of 5 years, but in the last year, i.e., the fifth year, an employee must complete 240 days to be eligible for the gratuity. After that, below six months do not count any days, and if completed six months, then the full year is counted. For example, if an employee worked for 5 years and 6.2 months, it would count as 6 years, but if they worked 5 years and 5.9 months, it would only count as 5 years.

T&R

Manoj Kumar
teotiamanoj@gmail.com

From India, Delhi
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Five years of service are mandatory for an employee to be eligible for gratuity under the Act. The rule about counting part of the year's service for eligibility for payment is only relevant for the calculation of the amount payable when the employee has not worked during all the weeks of the year.
From India, Mumbai
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Hi, For gratuity 240 days to b completed in the last fifth year, i.e. if any employee has worked 4 year 240 days in organisation then the are entitled for the avaling Gratuity.
From India, Delhi
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I have a unique case. Joining Date: 22nd May 2004 Planned Last Working Day: 8th May 2009 In this case is the person eligible for receiving gratuity

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Dear,

According to the strict preposition of the Payment of Gratuity Act, 1972, you are also sailing in the same boat. We have heard that one of the Hon'ble HCs has given a judgment to the effect that if any employee works for 240 days and above during the fifth year, then that employee will also become eligible for receiving a gratuity amount. Still, without referring to that judgment, no one can advise you to file a claim case before the Controlling Authority under the Payment of Gratuity Act, 1972. Due to this hearsay, we are facing these types of expectations in the field.

Regards,

Regards,

R.N.Khola

(Labour Law & Legal Consultants)
09810405361

From India, Delhi
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Sir, I am also having same problem as one of our employee has worked for 4 Yrs. 09 Months and 20 days in our organisation. Regards, Kuldeep Kaushik 09896991465
From India, Delhi
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DearKuldeep,
Strictly according to the P G Act, 1972 the employee is not entitled to gratuity payment as he have not completed five years of service but the Hon’ble Madras HC in the case of Mettur Beard Sell Ltd Versus RLC has decided the same type of issue. It was held that any employee who completes 240 days of service in a year in the 5th year will be deemed to have continued in service for one year as stipulated by sec. 2A of the Payment of Gratuity Act. It was held that an employee who has put in his services for 10 months and 18 days for the 5 year subsequent to first 4 years should be deemed to have completed, continued service of 5 years and is entitled for gratuity. Therefore go through the judgement & discuss the matter with your management & take decision accordingly at your level.1998 LLR 1072 Mad H.C.


Regards,
R.N.Khola






From India, Delhi
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Dear Ishmeet , If this Act is applicable to your unit then you are eligible to have gratuity payment considering service as 6 years. R.N.Khola
From India, Delhi
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Hi, I would like to ask about the minimum number of years or days an employee needs to work to be eligible for gratuity. I have completed 4 years, 10 months, and 15 days. Am I eligible for gratuity? Some sources mention 4 years, 8 months, and 20 days, while others state 240 days after completing 4 years. Is there any documentation that supports this? I have discussed this with the company HR/Finance department, and they are saying I am not eligible despite completing 4 years, 10 months, and 15 days. Please assist urgently.
From United Kingdom, Saint Helens
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Dear Member,

Please go through the judgment of the Honorable Madras High Court and then decide whether you want to file a claim case for payment of gratuity before the Authority under the Payment of Gratuity Act in your area. You can find a copy of this judgment on similar topics appearing on the right side of this thread itself.

Regards,
R.N. Khola

Hi, I would like to ask about the minimum years or days an employee needs to be eligible for gratuity. I have completed 4 years, 10 months, and 15 days. Am I eligible for gratuity? Some sources mention 4 years 8 months and 20 days, while others say 240 days after 4 years. Is there any supporting document for this? I have discussed this with the company's HR/Finance department, and they claim I am not eligible despite completing 4 years, 10 months, and 15 days. Please help urgently.

From India, Delhi
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Yes you are elegible for gratiuty for your reference pl study madras high court decision on this issue. I also attach file for your ref. Thx & regards tarun arora
From India, Chandigarh
Attached Files (Download Requires Membership)
File Type: pdf MADRAS HIGH COURT.pdf (1.55 MB, 769 views)

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I am working for a private firm and will be completing 4 years and 10 months. I come across various people telling me that serving 5 years is mandatory as per the Gratuity Act and any deviation needs to be settled only through court. There are citings of judgments stating that 240 days (8 months) in the 5th year are eligible for gratuity. Is this true? Or is there any other way to get my gratuity for a shortfall of 2 months?
From India, Mumbai
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Sorry, all. Indradeb is applicable for gratuity. First, let me clarify one thing: how many days should we consider as one year? It is 240 days, right? So, in this case, he has completed 4 years and 280 days, making him eligible for gratuity.

For example, in my previous company history, I worked for 4 years and 11 months. Does this mean I am not eligible for gratuity? No, I am eligible for gratuity, and I received the gratuity amount last year. I also have a judgment copy.

Please ensure there is only one line break between paragraphs for better readability.

From India, Kolkata
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Dear All,

This has become a classic question among all fraternities of people.

Q. What is the eligibility for Gratuity?

A) Continuous service of not less than five years.

Q. What is continuous service:

A. As per section 2A of the Gratuity Act, continuous service means the following:

Continuous service means a period of uninterrupted service which includes:

1) Employee's all days of physical presence (i.e., when he has attended work/duty)

2) Absence due to sickness

3) Absence due to accident

4) Absence from duties even after exhaustion of all leave (i.e., leave without pay with the approval from management; such absence should not be unauthorized, i.e., on undisciplined grounds like absence without any intimation, abandonment of duties, etc.)

5) Absence due to lay-offs (i.e., when the company lays off employees for their reasons)

6) Absence due to authorized strikes or lockouts

7) Absence due to cessation of work not due to any fault of the employee

Q. How many days make one year of continuous service?

A. Continuous service for a period of one year (12 months) means:

a) 190 days for employees stationed below the ground like mines or

b) 190 days for establishments that work less than 06 days a week

c) 240 days for all other cases (i.e., for all establishments working 06 days a week & above the ground)

B. Continuous service for a period of six months means:

a) 95 days for employees stationed below the ground like mines or

b) 95 days for establishments that work less than 06 days a week

c) 120 days for all other cases (i.e., for all establishments working 06 days a week & above the ground)

C. Continuous service for employees in seasonal employment means 75% of days worked on which the establishment was in operation/working (be it for calculating one year of continuous service or six months of continuous service, it will be seen whether the employee has worked 75% of the total working days of the establishment)

Therefore, please check the following:

1. Whether you work below or above the ground.

2. Your establishment is 06 days a week or less than 06 days.

Then, as per your total years of service, calculate for each completed 12 months the eligibility for continuous service. It should be five years of continuous service & NOW don't get confused about the meaning of continuous service :)

Correct Spelling and Grammar: Identify and fix any spelling or grammatical mistakes in the text.

From India, Mumbai
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Dear All, Five years,"contineous Service", refer the definition of "Contineous Service", you all will found answer whether he will eligible or not ?
From India, Mumbai
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Sec 2A (continuous service) under payment of Gratuity

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 a 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;

(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 purposes 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 applicable 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 an 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 a 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 a period.

From India, Kolkata
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hi to all my frends here As i understood Gratuity is due after competing continous five year of job May I know about gratuity rules for construction industry all over India. Am I right
From India, Noida
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iam working 15 years for pvt ltd company i want service graduaity detail no p.f only salary 9600 please send me

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Eligibility for Gratuity

1) Continuous service / uninterrupted service for 5 years.
2) 240 working days should be present in a year.
3) In case of continuous service for a period of 5 years but not completing 240 days in any year, the employee is eligible for payment of Gratuity for 4 years, not for 5 years.

Hope this brief will sort out all the gratuity-related issues discussed.

From India, Pune
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Dear Sandeep Singh, Doubtlessly, you are eligible for gratuity, as your service is more than the minimum prescribed qualifying service of 4 years and 240 days.
From India, Delhi
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I Joined my organization on 4 October 2011.So Can anyone please let me know that Am i eligible for Gratuity now or not??Please revert.
From India, Gurgaon
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Yes, you are eligible for gratuity since you are going to complete 4 years and 8 months on 4th October 2016.

Quote: According to the 2012 Supreme Court judgment, a person who has completed 4 years and 6 months of service is eligible for gratuity.

From India, Hyderabad
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Dear Team,

Thank you for the valuable information. I am seeking support to understand if an employee who has worked for 5 years and submits their resignation in the same month they are serving their notice period is eligible for gratuity.

Thank you,
Priya

From India, Bangalore
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Hello Priya As per your information given, the person is eligible for Gratuity and it has to be shown in the F&F settlement.
From India, Hyderabad
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I am a bit confused as I am a Fresher. 4 Years 240 days makes a person eligible for gratuity, but only when he completes 5 years he can claim for it??? Am I right?? Please guide me
From India, Bengaluru
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Hi Priya, You are misinformed. If employee has worked for 240 days in the 5th year, the year is treated as completed for the purpose of gratuity.
From India, Delhi
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This topic came up for discussion in 2008. Hence, there could be different interpretations on this. In a recent judgment of Kerala High Court, which followed the Madras High Court verdict in Mettur Beardsel's case, it has been held that working for 240 days in the fifth year would make an employee eligible for gratuity. Following these verdicts, no change has been made to the Payment of Gratuity Act by means of an amendment. Therefore, barring Kerala and Tamil Nadu, if any employer or Controlling Authority under the Payment of Gratuity Act, namely the Labor Officer, refuses the claim for gratuity, saying that according to the law, an employee who has completed 5 years of continuous service would only be entitled to gratuity and that the interpretations of the High Court will not bind in individual cases, the employee will have to move to court. If your court interprets that 240 days are the days of work to be put in over a period of 12 months in order to make the service continuous and uninterrupted, and the Act has not made it clear that a person who has not completed 5 years of service from the date of joining but has worked for 240 days in each year, including the fifth year in which the gratuity has been claimed as due, will not be eligible for gratuity, what will be the next step?

It is true that legislations are meant for the beneficiaries. Therefore, if the employer is ready to give gratuity to an employee who has not worked for 5 years, it is well and good. Similarly, the Controlling Authorities may also follow the same interpretations about gratuity qualifying service. But you cannot say that 240 days in the fifth year will qualify for gratuity unless the Act is so amended.

Madhu.T.K

From India, Kannur
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Hi Madhu,

Your post is quite confusing and provides the interpretation as if the law does not provide for 240 days of the year to be treated as a completed year for the purpose.

The definition in section 2(c) states:

"(c) 'continuous service' means uninterrupted service and includes service which is interrupted by sickness, accident, leave, layoff, strike, or a lock-out or cessation of work not due to any fault of the employee concerned, whether such service was rendered before or after the commencement of this Act."

"Explanation I.- In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than-"

"(i) 190 days, if employed below the ground in a mine, or"

"(ii) 240 days, in any other case, except when he is employed in a seasonal establishment."

THE DEFINITION IS QUITE CLEAR.

However, can you please clarify which type of amendment you want for which part of the definition, as per your interpretation?

From India, Delhi
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I meant to say that a provision should be added to section 4(1) of the Payment of Gratuity Act to clarify that 240 or 190 days, as the case may be, shall constitute eligible service in the fifth year. Currently, it is stated that gratuity shall be payable to an employee after they have rendered continuous service of not less than five years. This section makes it obligatory that in order to be eligible for gratuity, one should have worked for 5 years. The same interpretation was given by the High Court of AP in P Raghavalu & Sons Vs Addl. Labour Court. Although the Madras High Court and Kerala High Court have issued superseding judgments with different interpretations and rejected the judgment of the Hyderabad High Court, stating that it was primarily based on the AP Shops and Commercial Establishments Act and not solely on the Payment of Gratuity Act, we cannot disregard the significance of this judgment unless we have clarification regarding the eligibility of gratuity for an employee who has not completed five years of service.

Madhu.T.K

From India, Kannur
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Hi Madhu,

Interpretations differ from case to case depending upon the smartness or ignorance/laziness of the lawyers fighting the case, as judgment of the judges tilt towards the submissions of the lawyers who can convince the judge in any case. You can very well understand that point if contradictory judgments exist in law. Otherwise, the provision of the section is very much clear on the definition of 5 years of service. Provisos everywhere are quite unwarranted when the section of law makes it clear about the provision.

From India, Delhi
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Ban -SWB yes you are right ,,,,Hydrabad high court also gave order on the little same case,
From India, KolhÄpur
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Hello, I am Karan Singh. My joining date is 19th April 2011, and I am still working in the organization. I have completed 5 years and 4 months. So, could you please confirm if I am eligible for gratuity? Someone mentioned that once you complete 5 years and 6 months, you become eligible. Kindly confirm the status of my gratuity. Please do the needful.
From India, Delhi
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Dear Karan Singh,

You could have understood very well from the long discussions held in the original query that you are eligible for gratuity without any doubt. You have been wrongly informed by someone about completion of 5 years & 6 months of service.

From India, Delhi
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Hi All, I have completed 4 years and 304 Days (15 July 2012 to Till date). Am I eligible for Gratuity payment on resignation?
From India, Bangalore
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Dear Sir/Madam,

If an employee has completed five years of service with the company as per the register, with two years of continuous present service and the following three years of continuous absence or ESIC leave, they will be eligible for gratuity.

Regards,
Maan

From India , New Delhi
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I joined an organization on 02.01.2012. At that time, they only provided an offer letter. It was not until March 1st, 2012, that I received my appointment letter, which mentioned the date of joining as well. My last working day was 13th Nov 2016. I resigned properly. Am I eligible to apply for gratuity?
From India, Chennai
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Dear Sir / Madam, I have work in a company 4 years 9 month, do I eligible for gratuity or not. if company denine for given gratuity then what will be way to get gratuity.
From India
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if a worker not completed 240 days in all 5 years, then is he entitled to Payment of gratuity.
From India, Bhogpur
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240 days is inclusive of all paid holidays and paid leaves and if an employee has not done 240 days' working he will qualify for gratuity.
From India, Kannur
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Dear All’s As per section 4 of gratuity act is clear mention, service is not less then rendering continues five year service. so that no any eligible for gratuity less than five years.
From India, Pune
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