Ms. Sandhya,
I would like to know one clarification in view of one problem (discussed hereunder ) from your end in respect of payment of gratuity under Payment of Gratuity Act, 1972. Suppose an employee who served in an organization for 8 years at a stretch and claimed his gratuity amount from his/her employer after resignation. The necessary gratuitous amount was released in favour of the said employee. One year later the same emploee joined in another company/firm and served there for 11 years uninterruptedly. Can he/she claim gratuity again from his/her later employer from which he/she retired after superannuation ? Is double claim of Gratuity is acceptable in the eyes of law ? If not, then what are the identification marks through which an employee could be prevented from claiming gratuity further from different employers ? Thanks & hope to receive any reply in respect of the above from your desk. You may also send the reply in my e-mail id.
[Biswajit Pani]
E-mail Id. :
From India, Bhubaneswar
13I would like to know one clarification in view of one problem (discussed hereunder ) from your end in respect of payment of gratuity under Payment of Gratuity Act, 1972. Suppose an employee who served in an organization for 8 years at a stretch and claimed his gratuity amount from his/her employer after resignation. The necessary gratuitous amount was released in favour of the said employee. One year later the same emploee joined in another company/firm and served there for 11 years uninterruptedly. Can he/she claim gratuity again from his/her later employer from which he/she retired after superannuation ? Is double claim of Gratuity is acceptable in the eyes of law ? If not, then what are the identification marks through which an employee could be prevented from claiming gratuity further from different employers ? Thanks & hope to receive any reply in respect of the above from your desk. You may also send the reply in my e-mail id.
[Biswajit Pani]
E-mail Id. :
From India, Bhubaneswar
hi,biswajit,
i think employee is eligible for gratuity from their new employer if he is complited 5 years in that organisation,
if i am wrong ,please correct me,
Eligibility for gratuity is,
An employee is eligible for receiving gratuity payment only after he has completed five years of continuous service. He is said to be in continuous service when he has provided uninterrupted service during that period.
on super annuation or
on his retirement or resignation or
death or disablement due to accident or disease.
This condition of five years is not necessary if the termination of the employment of an employee is due to death or disablement. However, interruption on account of sickness, accident, leave, lay-off, strike, lockout, cessation of work not due to any fault of the employee will not be considered as a break in service. (Section 4)
regards
hemant sailor
From India, New Delhi
i think employee is eligible for gratuity from their new employer if he is complited 5 years in that organisation,
if i am wrong ,please correct me,
Eligibility for gratuity is,
An employee is eligible for receiving gratuity payment only after he has completed five years of continuous service. He is said to be in continuous service when he has provided uninterrupted service during that period.
on super annuation or
on his retirement or resignation or
death or disablement due to accident or disease.
This condition of five years is not necessary if the termination of the employment of an employee is due to death or disablement. However, interruption on account of sickness, accident, leave, lay-off, strike, lockout, cessation of work not due to any fault of the employee will not be considered as a break in service. (Section 4)
regards
hemant sailor
From India, New Delhi
There is is no rule saying that Gratuity cannot be claimed more than one times. Look, Gratuity is payable to any employee who has been in the continuous service of a company for more than 5 years.
Now, if "Mr. X" has worked in 'ABC Limited" for 6years, then when he leaves the company, he is entitled to gratuity (Last Basic/26)x15x6
And then if he joins 'DEF Limited' and works there for 11 years, then he can claim gratuity for the 11 years that he has worked at 'DEF Limited' (continuous service) which is calculated as (Last Basic/26)x15x11
Gratuity is purely a function of the number of years (minimum 5 years) an employee is in continuous service with a company. So it can be claimed any number of times, provided that he has been in the service of each of the companies (where he has worked) for more than 5 years.
Now, if "Mr. X" has worked in 'ABC Limited" for 6years, then when he leaves the company, he is entitled to gratuity (Last Basic/26)x15x6
And then if he joins 'DEF Limited' and works there for 11 years, then he can claim gratuity for the 11 years that he has worked at 'DEF Limited' (continuous service) which is calculated as (Last Basic/26)x15x11
Gratuity is purely a function of the number of years (minimum 5 years) an employee is in continuous service with a company. So it can be claimed any number of times, provided that he has been in the service of each of the companies (where he has worked) for more than 5 years.
Hi, I think Hemant & abi is quiet right. I am eagerly waiting for next post on this subject.
From India, Nagpur
From India, Nagpur
Thanx a lot to both Hemant & Abi for clarifying with examples in respect of claiming gratuity from different employers serving for 5 yrs each continuously on different occasions. Now, it's clear that there is no such bar to claim the gratuity more than once if eligible as per the statute.Than u both once again.
[Biswajit Pani]
From India, Bhubaneswar
[Biswajit Pani]
From India, Bhubaneswar
Hi,
We have a minimum of 3 years to be eligible for gratuity as compared to 5 years (part of employee welfare scheme and retention). And also that if you are in your 4th year of service and have completed 6 months you will be eligible for 4 years gratuity.
Regards,
Radhika
From India, Bangalore
We have a minimum of 3 years to be eligible for gratuity as compared to 5 years (part of employee welfare scheme and retention). And also that if you are in your 4th year of service and have completed 6 months you will be eligible for 4 years gratuity.
Regards,
Radhika
From India, Bangalore
Ms. Radhika,
Can you please clarify the eligibility for claiming gratuity under payment of Gratuity Act, 1972. As per statute, we all know it should be 5 yrs of continuous service to claim the gratuity amount but, I came to know from your reply in response to one post the 3yrs of service eligibility.Is it under special circumstances the service period is reduced to 3 yrs in place of 5 yrs or the correponding section is amended in the statute i.e. Payment of Gratuity Act,1972 ? If it's amended right now ,then I may be communicated the amendment no. of the same. Hope to receive any reply soon from your end. Thank you.
[Biswajit Pani]
E-mail Id:
From India, Bhubaneswar
Can you please clarify the eligibility for claiming gratuity under payment of Gratuity Act, 1972. As per statute, we all know it should be 5 yrs of continuous service to claim the gratuity amount but, I came to know from your reply in response to one post the 3yrs of service eligibility.Is it under special circumstances the service period is reduced to 3 yrs in place of 5 yrs or the correponding section is amended in the statute i.e. Payment of Gratuity Act,1972 ? If it's amended right now ,then I may be communicated the amendment no. of the same. Hope to receive any reply soon from your end. Thank you.
[Biswajit Pani]
E-mail Id:
From India, Bhubaneswar
Hi,
Even though my current Company employees need not be covered under Gratuity Act, to the benefit of the employees the Company has gone ahead and created a privately administered Gratuity trust with necessary government approvals.
Therefore, all employees are eligible for gratuity as per Gratuity Act. An employee is eligible for gratuity after completion of 3 years of continuous service with the Company. 15 days of Basic salary will be paid for every year of completed service or part thereof in excess of 6 months. Gratuity will be paid at the time of retirement or resignation of the employee.
The amount so paid is taxable as per the Income Tax Act, 1961 beyond the limits specified therein.
Regards,
Radhika
From India, Bangalore
Even though my current Company employees need not be covered under Gratuity Act, to the benefit of the employees the Company has gone ahead and created a privately administered Gratuity trust with necessary government approvals.
Therefore, all employees are eligible for gratuity as per Gratuity Act. An employee is eligible for gratuity after completion of 3 years of continuous service with the Company. 15 days of Basic salary will be paid for every year of completed service or part thereof in excess of 6 months. Gratuity will be paid at the time of retirement or resignation of the employee.
The amount so paid is taxable as per the Income Tax Act, 1961 beyond the limits specified therein.
Regards,
Radhika
From India, Bangalore
Hi,
The Gratuity act is one of the welfare acts and it says that Gratuity is payable for the loyalty of the employee. If a person has worked for more than 5 yrs he is eligible for Gratuity irrespective of how many co. he has worked for.
Every time he has worked for more than 5 yrs he is eleigible.
Sumit
From India, Bangalore
The Gratuity act is one of the welfare acts and it says that Gratuity is payable for the loyalty of the employee. If a person has worked for more than 5 yrs he is eligible for Gratuity irrespective of how many co. he has worked for.
Every time he has worked for more than 5 yrs he is eleigible.
Sumit
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc