Hello, I have completed 4 yrs 11 months, and 5 days in my previous job. in all likelihood, i have completed 240 days in my 5th year. am I eligible for gratuity? I contacted my ex-employer and the finance team said they are evaluating the case. please advise. Any pointers to law books or legal docs supporting my case are greatly appreciated
Thank you
From India, Bangalore
1Thank you
From India, Bangalore
Hi, Any employee who has completed 4 yrs and 8 months or (4 yrs and 240 days in the 5th year.) of service is eligable for gratuity as per gratuity act ( The Payment of Gratuity Act, 1972)
From India, Chennai
From India, Chennai
An employee is Eligible for Gratuity only if he’s having 240 days continous service in each completed year for 5 years.
From India, Hyderabad
From India, Hyderabad
as per gratuity act any employee who have not completed there 5 years of continous service they will not eligible for grtuity. even though they have completed the 4 years 11 months. so anu u will not be eligible for gratuity.
From India, Angul
From India, Angul
Mr. coolheadtamil is correct, you are reqired to complete 240 days in an year, so for fifth year if you have already completed ur 240 days(though in 11 months) you will be eligible for gratuity.
Mayuri
Manager - HR
From India, Pune
Mayuri
Manager - HR
From India, Pune
I do agree with rath ratikanta,as per gratuity act any employee who have not completed there 5 years of continous service they will not eligible for grtuity.
From India, Ahmadabad
From India, Ahmadabad
Hi ,
It is clarified here that as per gratuity act any employee who has not completed his continuous 5 years service in an establishment ,he will not eligible for getting the gratuity amount, even though he has completed the 4 years 11 months service. The 240 days clause is mentioned in the Act for the purpose of calculation of Gratuity, i.e. if the person is entitled for gratuity and in the sixth year he has completed 240 days continuous service then he will be entitled for whole year Gratuity in the sixth year. For the entitlement of the gratuity amount , one has to complete 5 years service in an establishment. So you are not eligible for getting the gratuity amount.
V.K.Gupta
From India, Delhi
It is clarified here that as per gratuity act any employee who has not completed his continuous 5 years service in an establishment ,he will not eligible for getting the gratuity amount, even though he has completed the 4 years 11 months service. The 240 days clause is mentioned in the Act for the purpose of calculation of Gratuity, i.e. if the person is entitled for gratuity and in the sixth year he has completed 240 days continuous service then he will be entitled for whole year Gratuity in the sixth year. For the entitlement of the gratuity amount , one has to complete 5 years service in an establishment. So you are not eligible for getting the gratuity amount.
V.K.Gupta
From India, Delhi
Dear Friends,
Madras HC judgment has been taken by HR people as last word on the point of gratuity payment before completion of five years of continuous service.
It has been interpreted as if it has legal binding all over country.For the benefit of all , I think it proper to clarify the position.
Madras HC judgment has legal binding in Tamil Nadu state only. In other states it has only persuasive value and not legal binding.
There has not been any decision from SC on this point. Till any such judgment comes from highest court of the land, provision of the Gratuity Act will always prevail which specifies the condition of eligibility for gratuity which is only after completion of continuous service of five years.
240 days in each year has to taken in to account only for the purpose of calculation of gratuity.
Relaxation from five years of service is only in the case of death or disablement.
Regds
anil kaushik
Chief Editor-Business Manager-HR magazine
B-138,Ambedkar Nagar, Alwar-301001 (Raj.) India
Mob;09829133699
From India, Delhi
Madras HC judgment has been taken by HR people as last word on the point of gratuity payment before completion of five years of continuous service.
It has been interpreted as if it has legal binding all over country.For the benefit of all , I think it proper to clarify the position.
Madras HC judgment has legal binding in Tamil Nadu state only. In other states it has only persuasive value and not legal binding.
There has not been any decision from SC on this point. Till any such judgment comes from highest court of the land, provision of the Gratuity Act will always prevail which specifies the condition of eligibility for gratuity which is only after completion of continuous service of five years.
240 days in each year has to taken in to account only for the purpose of calculation of gratuity.
Relaxation from five years of service is only in the case of death or disablement.
Regds
anil kaushik
Chief Editor-Business Manager-HR magazine
B-138,Ambedkar Nagar, Alwar-301001 (Raj.) India
Mob;09829133699
From India, Delhi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc