One of Employee joined our organization on 1st April 2004 on probation and Confirmed on 1st Oct.2005, now he is given resignation letter on 1st March 2009 with mentioned consider his one month notice period as per terms & condition of appointment letter. The same resignation letter is accepted by management and relieved him with immediate effect ie.on 2nd March 2009.
In his Appointment letter mentioned clause : - On confirmation, your services can be terminated by one month’s notice or wages/salary in lieu of notice. Similarly, you can relinquish your services by giving one month’s notice in writing or one month’s wages/salary in lieu of notice.
Till date we have not prepare his full and final dues. My question is that whether he is eligible for Gratuity Payment?
Kindly give your suggestion Please.
Regards
Abhay
From India, Pune
In his Appointment letter mentioned clause : - On confirmation, your services can be terminated by one month’s notice or wages/salary in lieu of notice. Similarly, you can relinquish your services by giving one month’s notice in writing or one month’s wages/salary in lieu of notice.
Till date we have not prepare his full and final dues. My question is that whether he is eligible for Gratuity Payment?
Kindly give your suggestion Please.
Regards
Abhay
From India, Pune
167
Dear Abhay,
If your management had relieved the employee inspite of his willingness to serve the notice period, then you have to pay his March month's salary.
Dear Malik,
It has been clearly mentioned that the employee has put in his resignation on March 1st 2009. My question is that, What would be the duration of the employees service in the organization. Is it 5 Years and 9 months (2nd March 2009-1st APril 2004) or 4 years and 4 months (2nd march 2009-1st Oct 2005)?
Dear Abhay,
If the employees service is 5 Years and 9 months, you have to pay the gratuity irrespective of his resignation date but if the same is 4 Years and 4 Months, you need not pay the gratuity. However, get clarified if you have to include the March Month salary for the calculation of gratuity (as the employee might have had a salary hike).
From India, Mumbai
If your management had relieved the employee inspite of his willingness to serve the notice period, then you have to pay his March month's salary.
Dear Malik,
It has been clearly mentioned that the employee has put in his resignation on March 1st 2009. My question is that, What would be the duration of the employees service in the organization. Is it 5 Years and 9 months (2nd March 2009-1st APril 2004) or 4 years and 4 months (2nd march 2009-1st Oct 2005)?
Dear Abhay,
If the employees service is 5 Years and 9 months, you have to pay the gratuity irrespective of his resignation date but if the same is 4 Years and 4 Months, you need not pay the gratuity. However, get clarified if you have to include the March Month salary for the calculation of gratuity (as the employee might have had a salary hike).
From India, Mumbai
Dear Abhay,
In our opinion the concerned employee has become eligible for gratuity as he have given notice of one month. This type of action regarding acceptance of resignation at your level can not stated to be justified in any manner. Moreover according to the judgement of Hon'ble Madras High Court he is also eligible for payment of gratuity amount in his full & final payment as he has completed 240 days working in the fifth year also inspite your acceptance of resignation with immediate effect.
Submitted as requested.
Regards,
R N Khola
Sr Associate
From India, Delhi
In our opinion the concerned employee has become eligible for gratuity as he have given notice of one month. This type of action regarding acceptance of resignation at your level can not stated to be justified in any manner. Moreover according to the judgement of Hon'ble Madras High Court he is also eligible for payment of gratuity amount in his full & final payment as he has completed 240 days working in the fifth year also inspite your acceptance of resignation with immediate effect.
Submitted as requested.
Regards,
R N Khola
Sr Associate
From India, Delhi
Hi,
I am working with an organization since 25 May 2004. I am about to complete 5 years of service here, currently I am 4 years 10 months. Due to the current market situation (recession) I am suspecting that I might be laid-off before I complete 5 years of service. Even if it is lay-off on paper it will be shown as if I have resigned myself. (This has happened to few other employees already). I will be asked to resign and the resignation is accepted immediately. Even leave encashment may not be done since it will be deducted assuming I have not served the notice period. The employee has no choice but to agree and resign to put his/her records straight with the employer so that he/she don’t face a problem with the next organization about experience verification. My question here is If I am asked to resign after completing 4 year 10 months and If I resign mentioning that I am ready to serve 2 months notice however if that resignation is accepted with immediate effect, I am eligible to receive gratuity as per the payment of gratuity act? Please help me understand this with your expert opinion. Thanks in anticipation.
Thanks,
Pratibha
From India, Mumbai
I am working with an organization since 25 May 2004. I am about to complete 5 years of service here, currently I am 4 years 10 months. Due to the current market situation (recession) I am suspecting that I might be laid-off before I complete 5 years of service. Even if it is lay-off on paper it will be shown as if I have resigned myself. (This has happened to few other employees already). I will be asked to resign and the resignation is accepted immediately. Even leave encashment may not be done since it will be deducted assuming I have not served the notice period. The employee has no choice but to agree and resign to put his/her records straight with the employer so that he/she don’t face a problem with the next organization about experience verification. My question here is If I am asked to resign after completing 4 year 10 months and If I resign mentioning that I am ready to serve 2 months notice however if that resignation is accepted with immediate effect, I am eligible to receive gratuity as per the payment of gratuity act? Please help me understand this with your expert opinion. Thanks in anticipation.
Thanks,
Pratibha
From India, Mumbai
4 Years 10 months you cannot claim gratuity as it has to be 5 years completed from your date of joining whether on probation or confirmed from day one....its clearly mentioned in the law that more than 6 months should be rounded off to 1 year but its only for the purpose of paying gratuity and not for the purpose of eligibility hence it has to be completed 5 years of regular service
From United Kingdom
From United Kingdom
If you are not compeleting 5 years of services, you should forget about Gratuity . As you have already completed 4 years 10 month it is matter of 2 months only. I think you are still in the same job and trying for better obtion. Now the choice is your.
From India, Delhi
From India, Delhi
Hi All,
As per the act the employee is eligible for gratuity if he/she has worked for 240 days in all the 5 years without any break in the service.
Thus pratibha you'll have to calculate how many days you have worked in the 5th year that will give you idea whether you are eligible for gratuity or not.
Dear Friends,
Many a times we forget this 240 Days clause .
Thanks!!
Regards,
Dhoop
From India, Pune
As per the act the employee is eligible for gratuity if he/she has worked for 240 days in all the 5 years without any break in the service.
Thus pratibha you'll have to calculate how many days you have worked in the 5th year that will give you idea whether you are eligible for gratuity or not.
Dear Friends,
Many a times we forget this 240 Days clause .
Thanks!!
Regards,
Dhoop
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
ESI's EFFORTs fighting Corona-Relaxati on In Eligibility Criteria And Enhancement In The Payment .pdf
Doctors on Part Time payment-Gratuit y eligibility- Gujarat High Court.docx