Hi,
I have completed 4 years 11 months & 23 days in a LTD company governed under the Payment of Gratuity Act 1972. Am I eligible for gratuity or not?
I have gone through an article which says that eligibility for the payment of gratuity is 5 years and also read some articles which state that as per the Supreme Court, eligibility of 4 years 8 months of service will be considered a full year if someone has completed 4 years 8 months or more.
Please advise me regarding my eligibility for the payment of gratuity.
From India, Hyderabad
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I have completed 4 years 11 months & 23 days in a LTD company governed under the Payment of Gratuity Act 1972. Am I eligible for gratuity or not?
I have gone through an article which says that eligibility for the payment of gratuity is 5 years and also read some articles which state that as per the Supreme Court, eligibility of 4 years 8 months of service will be considered a full year if someone has completed 4 years 8 months or more.
Please advise me regarding my eligibility for the payment of gratuity.
From India, Hyderabad
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Hi Srikanth,
As far as my understanding goes, it is 5 years. However, the organization can decide to pay gratuity if anyone has completed 4 years and 8 months. What's the hurry? Just a matter of another week, and you'll be eligible anyway.
Sree
From India, New Delhi
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9As far as my understanding goes, it is 5 years. However, the organization can decide to pay gratuity if anyone has completed 4 years and 8 months. What's the hurry? Just a matter of another week, and you'll be eligible anyway.
Sree
From India, New Delhi
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Dear Srikanth Pl.go thro' lots of posts on similar query in this citeHR. Yes, with 4 yrs plus 240 days is eligible for gratuity. kumar.s.
From India, Bangalore
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From India, Bangalore
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Dear Srikanth,
You are eligible for gratuity if you have completed 240 days in the 5th year. An employee rendering continuous service for a period of 4 years and 240 days in the 5th year will be deemed to have continued in service for 5 years as stipulated by Section 2A of the Act and hence shall be eligible for gratuity as per the judgment of the Madras High Court (1998 LLR 1072).
Thank you,
Subrata Singha
From India, Calcutta
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You are eligible for gratuity if you have completed 240 days in the 5th year. An employee rendering continuous service for a period of 4 years and 240 days in the 5th year will be deemed to have continued in service for 5 years as stipulated by Section 2A of the Act and hence shall be eligible for gratuity as per the judgment of the Madras High Court (1998 LLR 1072).
Thank you,
Subrata Singha
From India, Calcutta
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he gratuity eligibility service as per Gratuity Act 1972 is 5 years But as per the judgment from Supreme Court below-
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 8 months is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
From India, Kota
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"Judgment from Supreme Court:
"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 8 months is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
From India, Kota
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An employee who has put in his service for a period of 240 days in fifth year will be deemed to have continued in the service for 1 year. Mettus Beardsell Ltd., Madrs Vs. RLC(C) 1998 LLR 1072(Mad)
From India, Kota
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From India, Kota
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Dear Mr. Srikanth,
Nothing to worry. You are entitled to receive Gratuity as per the provisions of the Payment of Gratuity Act.
You may refer to the judgment of the Hon'ble Madras High Court wherein it is clearly mentioned that if an employee is rendering continuous service for a period of four years and completes 240 days in the fifth year, the employee will be deemed to have continued in service for five years. Consequently, the employee is entitled to gratuity.
Thank you,
Anil Sharma
From India, Pune
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Nothing to worry. You are entitled to receive Gratuity as per the provisions of the Payment of Gratuity Act.
You may refer to the judgment of the Hon'ble Madras High Court wherein it is clearly mentioned that if an employee is rendering continuous service for a period of four years and completes 240 days in the fifth year, the employee will be deemed to have continued in service for five years. Consequently, the employee is entitled to gratuity.
Thank you,
Anil Sharma
From India, Pune
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Dear Srikant,
In my experience, the completion of 240 days of work in the fifth year is enough to be eligible for gratuity. Even though your employer states that you have not fulfilled 5 years, you have the right to challenge it before the Controlling Authority. Begin by making a request to your employer, then send a reminder, and finally submit Form N under the Payment of Gratuity Act to the Controlling Authority.
Thanks
From India, Pondicherry
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In my experience, the completion of 240 days of work in the fifth year is enough to be eligible for gratuity. Even though your employer states that you have not fulfilled 5 years, you have the right to challenge it before the Controlling Authority. Begin by making a request to your employer, then send a reminder, and finally submit Form N under the Payment of Gratuity Act to the Controlling Authority.
Thanks
From India, Pondicherry
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If an employee has worked in excess of six months in fifth year then it will be counted as one year for entitlement and Gratuity calculation.
From India, Jamshedpur
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From India, Jamshedpur
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