Hi, How many years continuation in service for eligibility of gratuity? 5 years or 4 years 240 days....
From India, Mumbai
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1From India, Mumbai
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hello kartik, As per the amended act,the years should be not less than 5 year of continuation in service................ regards, suchita.
From India, Pune
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From India, Pune
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Hi Suchita,
Yes, you're right. But for Tamil Nadu, employees have to complete only 4 years and 240 days for eligibility. Please refer to the attachment.
Waiting for your comments.
Cheers,
S R Karthik
From India, Mumbai
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Yes, you're right. But for Tamil Nadu, employees have to complete only 4 years and 240 days for eligibility. Please refer to the attachment.
Waiting for your comments.
Cheers,
S R Karthik
From India, Mumbai
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hi friend . i need one help , pl tell me how can i post my requirements here . mohamedreh at yahoo dot com
From India, Madras
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From India, Madras
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Dear Mr. Karthick,
The eligibility criterion for receiving gratuity under the Payment of Gratuity Act is five years of continuous service, not four years. The method for calculating one year of continuous service was determined by the Honourable Madras High Court in the referenced judgment. According to this ruling, a worker is considered to have completed one year of continuous service if they have worked for a minimum of 240 days in that specific year. It is important to note that this law applies uniformly across India and is not limited to any particular state.
V. Harikrishnan
From India, Madras
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The eligibility criterion for receiving gratuity under the Payment of Gratuity Act is five years of continuous service, not four years. The method for calculating one year of continuous service was determined by the Honourable Madras High Court in the referenced judgment. According to this ruling, a worker is considered to have completed one year of continuous service if they have worked for a minimum of 240 days in that specific year. It is important to note that this law applies uniformly across India and is not limited to any particular state.
V. Harikrishnan
From India, Madras
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Hello,
I am working for a software company and I am wondering whether I am eligible for gratuity. Here are my details: I worked from April 2005 to June 2007 in India and then moved to onsite (U.S.A) through the same company. I am still working with the same company till date.
Please help me with this.
Thanks,
Bhanu.
From United States, Hamden
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I am working for a software company and I am wondering whether I am eligible for gratuity. Here are my details: I worked from April 2005 to June 2007 in India and then moved to onsite (U.S.A) through the same company. I am still working with the same company till date.
Please help me with this.
Thanks,
Bhanu.
From United States, Hamden
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Dear breddy4197,
I need the following information to respond to your queries:
1. What is the nature of work done by you in the company?
2. What are the terms and conditions under which you were sent onsite?
3. During your onsite posting, who is your employer?
V. HARIKRISHNAN
Joint Commissioner of Labour (Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
From India, Madras
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I need the following information to respond to your queries:
1. What is the nature of work done by you in the company?
2. What are the terms and conditions under which you were sent onsite?
3. During your onsite posting, who is your employer?
V. HARIKRISHNAN
Joint Commissioner of Labour (Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
From India, Madras
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1.The nature of the Job is software. 2.I have been moved to onsite on deputation. 3.My employer in India and at onsite are the same i.e Cognizant. Thanks, Reddy.
From United States, Hamden
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From United States, Hamden
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Respected experts,
I have worked for 12 years with a JV company that only imports and sells machines from its parent European JV partner. In India, the company was operated by a single promoter who now plans to sell his JV share to the parent company after presenting them with a highly optimistic forecast. When the new employer takes over, they will naturally have high expectations from our small workforce, which has worked diligently all these years under the promise of better prospects despite limited resources and training. We are not optimistic now due to the changing market trends of the products, as these negotiations have been ongoing for the last three years, draining our patience and energy.
Can we claim our gratuity or any other benefits from the current promoter, or are we obligated to work under the new owner once the transition occurs suddenly? Do we have no choice? Ideally, we would like our 12-year association with the current company to be acknowledged first, with gratuity, before deciding whether to enter into a new work agreement with the new management. We hope you understand our dilemma and can provide us with useful information.
Thank you.
From India, Delhi
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I have worked for 12 years with a JV company that only imports and sells machines from its parent European JV partner. In India, the company was operated by a single promoter who now plans to sell his JV share to the parent company after presenting them with a highly optimistic forecast. When the new employer takes over, they will naturally have high expectations from our small workforce, which has worked diligently all these years under the promise of better prospects despite limited resources and training. We are not optimistic now due to the changing market trends of the products, as these negotiations have been ongoing for the last three years, draining our patience and energy.
Can we claim our gratuity or any other benefits from the current promoter, or are we obligated to work under the new owner once the transition occurs suddenly? Do we have no choice? Ideally, we would like our 12-year association with the current company to be acknowledged first, with gratuity, before deciding whether to enter into a new work agreement with the new management. We hope you understand our dilemma and can provide us with useful information.
Thank you.
From India, Delhi
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Respected experts,
I have worked for 12 years with a JV company that solely imports and sells machines from its parent European JV partner. In India, the company was managed by a single promoter who now plans to sell his JV share to the parent company after presenting them with a highly optimistic forecast. When the new employer takes over, they will naturally have high expectations from our small workforce, who have dedicatedly worked for all these years with the promise of better prospects, despite limited resources and training. We are not optimistic now due to the changing market trends of the products, as negotiations have been ongoing for the past three years, draining our patience and energy.
Can we claim our gratuity or any other benefits from the current promoter, or are we compelled to work under the new owner once the transition suddenly takes place? Do we not have any choice? Ideally, we would like our 12-year association with the current company to be acknowledged first, with gratuity, before deciding to enter into a new work agreement with the new management. We hope you understand our dilemma and will provide us with valuable information and support.
Thank you.
From India, Delhi
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I have worked for 12 years with a JV company that solely imports and sells machines from its parent European JV partner. In India, the company was managed by a single promoter who now plans to sell his JV share to the parent company after presenting them with a highly optimistic forecast. When the new employer takes over, they will naturally have high expectations from our small workforce, who have dedicatedly worked for all these years with the promise of better prospects, despite limited resources and training. We are not optimistic now due to the changing market trends of the products, as negotiations have been ongoing for the past three years, draining our patience and energy.
Can we claim our gratuity or any other benefits from the current promoter, or are we compelled to work under the new owner once the transition suddenly takes place? Do we not have any choice? Ideally, we would like our 12-year association with the current company to be acknowledged first, with gratuity, before deciding to enter into a new work agreement with the new management. We hope you understand our dilemma and will provide us with valuable information and support.
Thank you.
From India, Delhi
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Dear Mr. Reddy,
I forgot to ask you about the location of Cognizant where you worked while in India. In Tamil Nadu, software companies are covered by the provisions of The Tamil Nadu Shops and Establishments Act. Therefore, the Payment of Gratuity Act is applicable to them according to the provisions of Section 1(3)(b) of the Payment of Gratuity Act. Persons engaged in software development would come within the definition of "employee" as defined under Section 2(e) of the Payment of Gratuity Act. Therefore, employees of software companies are governed by the provisions of the Payment of Gratuity Act unless the terms of gratuity offered by the software company are better than those of the Payment of Gratuity Act, in which case the better terms will prevail.
In your case, assuming that you had worked in Tamil Nadu, you are entitled to claim gratuity from your employer if you had worked with them for five continuous years. Also, considering Cognizant as your employer even while on-site, the services rendered on-site should be considered when calculating your length of service with Cognizant. If the length of service at the time you leave the company is not a complete five years, for example, 4 years and a few months, then to determine if the remaining months after four years count as a year of service, the number of days worked in those months must be at least 240 days.
If you have worked in a different state in India, please write back, and I will try to clarify.
V. HARIKRISHNAN Joint Commissioner of Labour (Retired) Government of Tamil Nadu Labour Law Consultant Chennai
From India, Madras
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I forgot to ask you about the location of Cognizant where you worked while in India. In Tamil Nadu, software companies are covered by the provisions of The Tamil Nadu Shops and Establishments Act. Therefore, the Payment of Gratuity Act is applicable to them according to the provisions of Section 1(3)(b) of the Payment of Gratuity Act. Persons engaged in software development would come within the definition of "employee" as defined under Section 2(e) of the Payment of Gratuity Act. Therefore, employees of software companies are governed by the provisions of the Payment of Gratuity Act unless the terms of gratuity offered by the software company are better than those of the Payment of Gratuity Act, in which case the better terms will prevail.
In your case, assuming that you had worked in Tamil Nadu, you are entitled to claim gratuity from your employer if you had worked with them for five continuous years. Also, considering Cognizant as your employer even while on-site, the services rendered on-site should be considered when calculating your length of service with Cognizant. If the length of service at the time you leave the company is not a complete five years, for example, 4 years and a few months, then to determine if the remaining months after four years count as a year of service, the number of days worked in those months must be at least 240 days.
If you have worked in a different state in India, please write back, and I will try to clarify.
V. HARIKRISHNAN Joint Commissioner of Labour (Retired) Government of Tamil Nadu Labour Law Consultant Chennai
From India, Madras
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Dear Ms Anuradha From the information furnished by you, I am of the view that you are eligible to get gratutity under the Payment of Gratutity Act.
From India, Madras
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From India, Madras
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Dear Mr Harikrishnan I would like to thank you for the timely response you provided. I have now received my gratuity payment from my earlier company. Appreciate your help! Thanks.
From India, Madras
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From India, Madras
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Dear Mr. V. HARIKRISHNAN,
I have a similar situation where I worked for an IT company for 5 years and 7 months. Three years and one month were in India, and I worked onsite as an intercompany transferee (same company) in "Sales." I later transferred back to a project based in India and worked onsite for another 7-8 months. Please help. Furthermore, I have many PL in India that were carried forward and should be encashed now.
1. What is the nature of work you did in the company?
A. Sales in India and onsite as well. Later transferred to a project for 7-8 months, but the location continued to be onsite.
2. What are the terms and conditions under which you were sent onsite?
A. Deputation for 3 years.
3. During your onsite posting, who is your employer?
A. Onsite subsidiary of the employer in India.
From Japan, Kawasaki
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I have a similar situation where I worked for an IT company for 5 years and 7 months. Three years and one month were in India, and I worked onsite as an intercompany transferee (same company) in "Sales." I later transferred back to a project based in India and worked onsite for another 7-8 months. Please help. Furthermore, I have many PL in India that were carried forward and should be encashed now.
1. What is the nature of work you did in the company?
A. Sales in India and onsite as well. Later transferred to a project for 7-8 months, but the location continued to be onsite.
2. What are the terms and conditions under which you were sent onsite?
A. Deputation for 3 years.
3. During your onsite posting, who is your employer?
A. Onsite subsidiary of the employer in India.
From Japan, Kawasaki
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Dear Mr. Sahni,
Assuming that 10 or more persons were working in the establishment in which you were/are employed, and based on the information furnished by you, you have worked with the same employer. Therefore, you are entitled to get gratuity under the Payment of Gratuity Act. The encashment of PL depends on the Act applicable to you, that is whether your establishment is registered under the Factories Act or under the Shops and Establishments Act.
From India, Madras
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Assuming that 10 or more persons were working in the establishment in which you were/are employed, and based on the information furnished by you, you have worked with the same employer. Therefore, you are entitled to get gratuity under the Payment of Gratuity Act. The encashment of PL depends on the Act applicable to you, that is whether your establishment is registered under the Factories Act or under the Shops and Establishments Act.
From India, Madras
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc