Hi,
I wanted to know if a person who has served in a private organization in India for 4 1/2 years is eligible for gratuity or not. Is the notice period considered as a term of service? Also, does the Payment of Gratuity Act override the company's own set of gratuity rules? Are there different sets of rules for Indian and foreign companies operating in India?
Thanks.
From India, Mumbai
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1I wanted to know if a person who has served in a private organization in India for 4 1/2 years is eligible for gratuity or not. Is the notice period considered as a term of service? Also, does the Payment of Gratuity Act override the company's own set of gratuity rules? Are there different sets of rules for Indian and foreign companies operating in India?
Thanks.
From India, Mumbai
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First of all, any company operating in India, whether Indian or foreign, must adhere to the country's labor laws. For payment of gratuity, completion of 5 years of service is required.
Thanks and regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Thanks and regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear,
He is not eligible to have gratuity from the organization. If the company has framed any Gratuity payment rules, then, in that case, those should not be less favorable than that provided in the Payment of Gratuity Act, 1972 if this Act is applicable to that unit.
With Regards,
R.N.Khola
Hi, I wanted to know if a person who has served in a private organization in India for 4 1/2 years is eligible for gratuity or not. Is the notice period considered as a term of service? Also, whether the Payment of Gratuity Act overrides the company's own set of gratuity rules? Are there different sets of rules for Indian and foreign companies operating in India?
Thank you.
From India, Delhi
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He is not eligible to have gratuity from the organization. If the company has framed any Gratuity payment rules, then, in that case, those should not be less favorable than that provided in the Payment of Gratuity Act, 1972 if this Act is applicable to that unit.
With Regards,
R.N.Khola
Hi, I wanted to know if a person who has served in a private organization in India for 4 1/2 years is eligible for gratuity or not. Is the notice period considered as a term of service? Also, whether the Payment of Gratuity Act overrides the company's own set of gratuity rules? Are there different sets of rules for Indian and foreign companies operating in India?
Thank you.
From India, Delhi
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1. Yes, the notice period is considered as a term of service.
2. The Payment of Gratuity Act states that any employee who has served for 5 years will have to receive gratuity at the rate of 15 days' salary for every completed year.
3. Yes, a company can have its own rules for the period of gratuity eligibility. For example, some software and IT organizations have a 2-year period as the eligibility for gratuity. However, according to the law, you must provide gratuity as part of your welfare program.
From India, Bangalore
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2. The Payment of Gratuity Act states that any employee who has served for 5 years will have to receive gratuity at the rate of 15 days' salary for every completed year.
3. Yes, a company can have its own rules for the period of gratuity eligibility. For example, some software and IT organizations have a 2-year period as the eligibility for gratuity. However, according to the law, you must provide gratuity as part of your welfare program.
From India, Bangalore
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Dear Sir,
An employee is entitled to gratuity if he or she has worked in an organization for five years or more. The calculation of gratuity is based on 26 days per month, as per the Gratuity Act. The notice period is considered as part of the term of service.
Thank you.
From India, Delhi
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An employee is entitled to gratuity if he or she has worked in an organization for five years or more. The calculation of gratuity is based on 26 days per month, as per the Gratuity Act. The notice period is considered as part of the term of service.
Thank you.
From India, Delhi
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Dear Friend, Not. Atleast he should have completed 4 years + 240 (8 months) to become eligible for gratuity. In case of death such service is not compulsory. sathish
From India, Jaipur
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From India, Jaipur
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Dear Firends, One can claim Gratuity when he has completed more then 4.5 Year. As in this terms more then 0.5 is consider as 01 year.
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5 years of completed service is a must in order to ensure eligibility for gratuity as per the Payment of Gratuity Act, 1972, except in the case of death. A company can have its own set of rules, provided they are not less beneficial compared to the provisions of the Payment of Gratuity Act, 1972. Companies operating in India, whether Indian or foreign, must adhere to Indian labor laws.
Thanks and regards, Shesh Nath Singh 9443328010
From India, Erode
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Thanks and regards, Shesh Nath Singh 9443328010
From India, Erode
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No gratuity can’t be a part of ctc as because this is a gratitude/reward to the employee from employer after the successful completion of 5 years or more in service. thanks & regards, sumit
From India, Ghaziabad
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From India, Ghaziabad
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(Fact Checked)-The user reply contains accurate information regarding gratuity eligibility, company rules, and the applicability of Indian labor laws to both Indian and foreign companies. (1 Acknowledge point)