I have worked for 6 years and 6 months in a company, out of which 2 years were on a contract basis and 4 years and 6 months were on a permanent basis. Now I am leaving the company. Am I eligible for gratuity payment upon resignation?
From India, Ranchi
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1From India, Ranchi
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You are very well applicable for Gratuity. According to the Gratuity Act 1972, you are eligible to receive gratuity after the completion of five years. It is calculated as one year if a person completes six months of service. Therefore, apart from the two years of your tenure, you have completed four years and 240 days; a year is deemed to be complete in terms of continuous service. Your two years of contract will also be added even if you were on a contract, but you should be in continuous service without a gap.
Regards
From India, Visakhapatnam
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From India, Visakhapatnam
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Thank you very much for the information. I would like to inquire if 4 years and 6 months of service individually qualify for gratuity. I have 2 years of contract service with a separate employee ID. Will this be combined with the aforementioned duration for gratuity calculation?
Regards,
Abhijit Mahato
From India, Ranchi
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Regards,
Abhijit Mahato
From India, Ranchi
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Dear Mr. Mahato, Is your 2 years service along with the 4 years 6 months with the same employer? Although, your 4 years 6 months of continuos service would make you eligible for the gratuity.
From India, Visakhapatnam
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From India, Visakhapatnam
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You may fill the Form I - Application for Gratuity by an employee, can be submitted to your employer.
From India, Visakhapatnam
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From India, Visakhapatnam
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What does "further 240 days continuous service" mean? If during this period casual leave, medical leave, or earned leave are taken, will the service still be considered continuous? Please advise.
Thanks/Regards,
Abhijit Mahato
From India, Ranchi
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Thanks/Regards,
Abhijit Mahato
From India, Ranchi
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The leaves are taken apart. Continuous service is service without a gap (you mentioned a 2-year contract, and the employer might have taken you on roll with continuous service). If there had been a gap between the 2 years and 4 years 6 months, then it wouldn't be considered 6 years 6 months. Preceding 240 days of service in the 5th year is counted as 1 year of service in the company. Have you resigned from the company yet, and what is the notice period for you?
Regards
From India, Visakhapatnam
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Regards
From India, Visakhapatnam
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Dear Madam, My joining in permanent service was 27.06.2008 and will released on 28.02.2013. Currently I am in notice period. Please advice. Thanks/Regards, Abhijit Mahato
From India, Ranchi
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From India, Ranchi
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As per the date specified by you, you would be completing 4 years and 8 months of service. Therefore, you will be eligible to claim Gratuity as per the Payment of Gratuity Act. Please check with your HR for the next steps after submitting Form I for gratuity. I hope this answers your query.
Regards,
From India, Visakhapatnam
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Regards,
From India, Visakhapatnam
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Will my service period be considered as "continuous service of not less than five years"?
If you have any rules or documents regarding this matter, please forward them to me for necessary action.
Thanks/Regards,
Abhijit Mahato
From India, Ranchi
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If you have any rules or documents regarding this matter, please forward them to me for necessary action.
Thanks/Regards,
Abhijit Mahato
From India, Ranchi
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An employee can apply for gratuity before leaving the service, and it is the employer's responsibility to pay the gratuity along with the full and final settlement to the employee within 30 days of their departure from the company. Even if you do not apply specifically, the employer should pay you by any means. In case of failure to pay gratuity, the employer will be required to pay you with interest at 12% from the date the gratuity becomes due (30 days after the employee leaves the establishment).
Please refer to the Payment of Gratuity Act for further information.
From India, Visakhapatnam
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Please refer to the Payment of Gratuity Act for further information.
From India, Visakhapatnam
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The 2 years working as a contract employee will not be counted in gratuity You were not working for the current employee but for a different one
From India, Mumbai
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From India, Mumbai
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Dear Saswata Banerjee, I m working with the same employer. Is it counted for gratuity? Abhijit Mahato
From India, Ranchi
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From India, Ranchi
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Your date of joining (DOJ) is 27.06.2008, and you were released on 28.02.2013, which means you worked for 4 years and 8 months. You are very well applicable for Gratuity. According to the Gratuity Act 1972, you are eligible to receive the gratuity after completing five years of service. It is calculated as one year if a person completes six months of service.
Regards,
BABUDADA
From India, Mumbai
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Regards,
BABUDADA
From India, Mumbai
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Understanding Gratuity Eligibility
The Gratuity Act entitles an employee to receive their gratuity, but they should not be an apprentice under the Apprentice Act. It is a question of whether the employer will consider your initial date of joining and count 6 years and 6 months or 4 years and 6 months and reject your plea.
It would be helpful to specify the name, designation of the post, or terms of the contract. I suggest making a request to the employer as the first step, giving a reminder after 15 days as the second step, and then approaching the Controlling Authority under the Payment of Gratuity Act of your region for the amount. Don't forget to specify your date of joining and leaving while claiming.
From India, Pondicherry
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The Gratuity Act entitles an employee to receive their gratuity, but they should not be an apprentice under the Apprentice Act. It is a question of whether the employer will consider your initial date of joining and count 6 years and 6 months or 4 years and 6 months and reject your plea.
It would be helpful to specify the name, designation of the post, or terms of the contract. I suggest making a request to the employer as the first step, giving a reminder after 15 days as the second step, and then approaching the Controlling Authority under the Payment of Gratuity Act of your region for the amount. Don't forget to specify your date of joining and leaving while claiming.
From India, Pondicherry
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Dear Abhijit,
Understanding Continuous Service Under The Payment of Gratuity Act, 1972
Sub-section (1) of Section 2A of The Payment of Gratuity Act, 1972, discusses continuous service. It clearly states that an employee shall be considered to be in continuous service for a period if he has, for that period, been in uninterrupted service. This includes service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike, lock-out, or cessation of work not due to any fault of the employee. Therefore, the paid leave you mentioned is included in the service period.
Eligibility for Gratuity
As rightly mentioned by Sharmila, you are eligible for gratuity for the entire period of service. The term "employee" is well-defined in clause (e) of section 1 of The Payment of Gratuity Act, 1972, which states that an "Employee" means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop, or other establishment. However, it does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity. According to the said clause, everyone is eligible for gratuity, whether they are a permanent (express) or contract (implied) employee.
I hope this clears up your doubts regarding your eligibility for gratuity.
Regards,
P. Vathiraj
From India
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Understanding Continuous Service Under The Payment of Gratuity Act, 1972
Sub-section (1) of Section 2A of The Payment of Gratuity Act, 1972, discusses continuous service. It clearly states that an employee shall be considered to be in continuous service for a period if he has, for that period, been in uninterrupted service. This includes service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike, lock-out, or cessation of work not due to any fault of the employee. Therefore, the paid leave you mentioned is included in the service period.
Eligibility for Gratuity
As rightly mentioned by Sharmila, you are eligible for gratuity for the entire period of service. The term "employee" is well-defined in clause (e) of section 1 of The Payment of Gratuity Act, 1972, which states that an "Employee" means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop, or other establishment. However, it does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity. According to the said clause, everyone is eligible for gratuity, whether they are a permanent (express) or contract (implied) employee.
I hope this clears up your doubts regarding your eligibility for gratuity.
Regards,
P. Vathiraj
From India
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If you were working through a contractor, you were not employed by this employer. Therefore, that period is not considered part of continuous service. Your service with the employer began when you joined their payroll.
If you were an employee working under a contract directly with the company, then you were a consultant, service provider, or a professional. In any of these cases, you were not considered a regular employee, and therefore, that period will not be counted.
Regards,
Abhijit Mahato
From India, Mumbai
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If you were an employee working under a contract directly with the company, then you were a consultant, service provider, or a professional. In any of these cases, you were not considered a regular employee, and therefore, that period will not be counted.
Regards,
Abhijit Mahato
From India, Mumbai
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Eligibility for Gratuity Payment
For the purpose of eligibility for the payment of gratuity, what is important is the period for which one remains an employee of an employer before separation, whether as a casual worker, temporary employee, contractual employee (not contract labor), or regular employee against a lien. Minimum continuous service should not be less than 5 years.
Calculation of Gratuity Amount
To calculate the amount of gratuity, the number of years of continuous service needs to be calculated, including any period less than a year but more than 6 months (which shall be taken as one full year).
From India, Pune
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For the purpose of eligibility for the payment of gratuity, what is important is the period for which one remains an employee of an employer before separation, whether as a casual worker, temporary employee, contractual employee (not contract labor), or regular employee against a lien. Minimum continuous service should not be less than 5 years.
Calculation of Gratuity Amount
To calculate the amount of gratuity, the number of years of continuous service needs to be calculated, including any period less than a year but more than 6 months (which shall be taken as one full year).
From India, Pune
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I am yet not get gratuity. Please advise what shall I do. Regards, Abhijit Mahato Mob. : 9836983586
From India, Ranchi
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From India, Ranchi
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf