Dear Team, I joined the company Anantapur (Andhra Pradesh) on 3rd September -2019 as an assistant. Manager. I just resigned from the company few days back (5th Jun-2024) and My last working day is 29th July 2024. Will I eligible for gratuity?
1. I work in an automobile manufacturing company five days a week (Timings 07:45 AM ~ 05.51 PM)
2. What are my options if they plainly deny my gratuity request, saying you haven't completed five years?
Thanks
Harish
1. I work in an automobile manufacturing company five days a week (Timings 07:45 AM ~ 05.51 PM)
2. What are my options if they plainly deny my gratuity request, saying you haven't completed five years?
Thanks
Harish
Section 2A of the Payment of Gratuity Act has been interpreted differently. One interpretation is that if the employee has worked for 240 days (190 days for establishment which work for less than 6 days in a week) in the fifth year, that year shall be treated as one year. If that interpretation is taken you will get gratuity. Another interpretation is that in order to be eligible for gratuity the basic condition is completion of five years service with each year constituting 240 days/ 190 days, as the case may be, in each year of 12 months. If this interpretation is taken then you will not be entitled to get gratuity. There are a few High Court rulings in support of the first interpretation, though there is no Supreme Court verdict in support of it. Therefore, if your establishment considers the second interpretation, that is, completion of 5 years for eligibility, and then working of 240/190 days in each year for entitlement and computation then you may have to challenge it before the Controlling Authority quoting these verdicts.
Approaching a Controlling Authority or taking a previous employer to that extent may spoil the relationship and the employer may retaliate by giving negative remarks. Therefore, such an action is not recommended if you are planning to continue with service in private sector. Obviously, if you are selected for any government opening or get an offer from any PSU or are planning to work independently then you can try the option of fighting.
From India, Kannur
4249Approaching a Controlling Authority or taking a previous employer to that extent may spoil the relationship and the employer may retaliate by giving negative remarks. Therefore, such an action is not recommended if you are planning to continue with service in private sector. Obviously, if you are selected for any government opening or get an offer from any PSU or are planning to work independently then you can try the option of fighting.
From India, Kannur
As per Sec, 4 of the Payment of Gratuity Act, 1972, gratuity is payable to an employee on the termination of employment after he has rendered continuous service of not less than five years either on is superannuation or on his retirement or on his death or disablement due to accident or disease. Provided, completion of 5 years is not mandatory in case of termination of employment due to death or disablement.
Continuous service is defined under Sec 2A of the Act which says that gratuity shall be paid if an employee works for 190 days in case of mine or 240 days in other case.
In the case of Mettur Beardsell Ltd Vs. The Regional Labour Commissioner (1998 LLR 1072), the Madras High Court has clearly held that gratuity is payable if an employee works for 4 years and 240 days or 190 days, as the case may be, in the fifth year and not necessarily he has to complete five years full term. There are few other case laws are also there. However, there is no SC verdict on this.
If the Management rejects your gratuity claim, you may approach the Authority under the Act and file a claim petition for payment of gratuity. It will be allowed and you can claim without any issue.
From India, Chennai
Continuous service is defined under Sec 2A of the Act which says that gratuity shall be paid if an employee works for 190 days in case of mine or 240 days in other case.
In the case of Mettur Beardsell Ltd Vs. The Regional Labour Commissioner (1998 LLR 1072), the Madras High Court has clearly held that gratuity is payable if an employee works for 4 years and 240 days or 190 days, as the case may be, in the fifth year and not necessarily he has to complete five years full term. There are few other case laws are also there. However, there is no SC verdict on this.
If the Management rejects your gratuity claim, you may approach the Authority under the Act and file a claim petition for payment of gratuity. It will be allowed and you can claim without any issue.
From India, Chennai
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf