Understanding Gratuity Entitlement Under the Gratuity Act: 240 Days Work Rule and Employee Eligibili - CiteHR

Dear All, I am seeking your input regarding a case where an employee has completed 4 years and 300 days in the current organization. According to the rules of the Payment of Gratuity Act, an employee must complete 5 years to be eligible for gratuity. However, the employee is claiming eligibility after completing 4 years and 240 days. I would appreciate hearing your thoughts on this matter.

Regards,
Vivek

From India, Mumbai
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I am sending you the file of updataions done by Govt in Gratuity for employees...
From India, Delhi
Attached Files (Download Requires Membership)
File Type: pdf Gratuity Act (Gazette Notifications) [1][1].pdf (726.5 KB, 1018 views)

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Dear SGVivek,

For gratuity claim completion, 240 days of actual work have been accepted by the courts. Hence, even though the employee has completed 4 years and 300 days of actual work, he/she will be eligible to claim the gratuity as a lawful right.

Ravindra Chaubal

From India, Nasik
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Hi Ravindra, This is a very valid information. is there any notification to this effect saying 240 days can be considered for claim. pls revert Regds Pradeepan
From India, Raipur
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he is entitle for the Gratuity. SC has given in a judgement that if a person completed 240 days working in the fifth year he is entitle. lalit m sharma
From India, Vijayawada
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I agree with Pradeepan. This information is very important since some of our staff will fall under the category of working for less than 5 years. Is there any notification stating that 240 days can be considered for a claim? Please respond with support for this claim. URGENT PLEASE!!
From India, New Delhi
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There is madras high court judgement on this issue , i hope it will help all of you. Pl find attachment. Thx tarun arora
From India, Chandigarh
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File Type: pdf MADRAS HIGH COURT.pdf (1.55 MB, 160 views)

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Dear Ravi,

Thank you for your valuable suggestion. Do you have a scanned copy of a notification that confirms or any other supporting documents that will assure our management? I will be very thankful to you if you are able to provide it to me.

Thanks,
Warm Regards,
Bhupesh


From India, Mumbai
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Can you send the proof of this Supreme Court judgement? It will be beneficial for all. Then the Gratuity rule of completing minimum 5 years of service (365x5 days) has no meaning.
From India, Mumbai
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He is eligible as in the Act it is mentioned as "number of years completed or part thereof," which means the number of years completed plus any excess of 6 months will be calculated as 1 year. In the present case, he has completed more than 6 months in addition to 4 years, which is deemed to be 5 years as stipulated in the Act. Hence, he is eligible.

Regards,
Venkataraman

From India, Madras
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If the employee had service the 300 days continous in the year, he is eligible for Gratuity.
From India, Tiruchchirappalli
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Hi, Please view the attached doc. Will get the doubt cleared. Jay
From India, Alandur
Attached Files (Download Requires Membership)
File Type: pdf Madras High Court _ Gratuity Judgement.pdf (1.55 MB, 145 views)

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