Hi,
I joined the company on 07/07/2008. I have resigned from my job on 21/02/2013, and my notice period is 1 month. I will be relieving on 21/03/2013. I am going to complete my 4.8 years on 07/03/2013. Due to this notice period, am I eligible for gratuity? Kindly clarify ASAP.
Regards,
Maharajan
From United States, Redwood City
I joined the company on 07/07/2008. I have resigned from my job on 21/02/2013, and my notice period is 1 month. I will be relieving on 21/03/2013. I am going to complete my 4.8 years on 07/03/2013. Due to this notice period, am I eligible for gratuity? Kindly clarify ASAP.
Regards,
Maharajan
From United States, Redwood City
You may check your working days during ( from 07.07.2012 to 21.03.2013) more than 240 days you are eligible to claim Gratuity. P. Xavier Raj
From India, Pondicherry
11From India, Pondicherry
Hi Xavier,
Thank you for your response. If I am calculating my working days from 07/07/2012 to 21/03/2013 (the last day of a company) as you said, it will only cross 240 days. However, the issue is that I am serving the notice period from 21-Feb-2013. I will reach 4.8 years on 07-Mar-2013. That's why I inquired whether I would still be eligible if I reach the 4.8 years mark in the middle of the notice period.
Regards,
Maharajan
From United States, Redwood City
Thank you for your response. If I am calculating my working days from 07/07/2012 to 21/03/2013 (the last day of a company) as you said, it will only cross 240 days. However, the issue is that I am serving the notice period from 21-Feb-2013. I will reach 4.8 years on 07-Mar-2013. That's why I inquired whether I would still be eligible if I reach the 4.8 years mark in the middle of the notice period.
Regards,
Maharajan
From United States, Redwood City
The Gratuity calculation taken from Joining date to Leaving date including notice period.
From India, Pondicherry
From India, Pondicherry
Dear Mr. Maharajan,
A person who has been in continuous service for 5 years is eligible for gratuity. The condition of 190/240 days of working is the explanation of continuous service and, I feel, not for counting or completing the first five years of service. In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than (i) 190 days, if employed below the ground in a mine, or (ii) 240 days, in any other case, except when he is employed in a seasonal establishment. The interruption here means in the form of strike, layoff, etc., and hence the condition of days of working has been explained.
Hence, unless you complete 5 years of service, i.e., from the date of joining to the date of discharge/release, you may not be eligible for gratuity. However, seniors are requested to comment.
Regards
From India, Mumbai
A person who has been in continuous service for 5 years is eligible for gratuity. The condition of 190/240 days of working is the explanation of continuous service and, I feel, not for counting or completing the first five years of service. In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than (i) 190 days, if employed below the ground in a mine, or (ii) 240 days, in any other case, except when he is employed in a seasonal establishment. The interruption here means in the form of strike, layoff, etc., and hence the condition of days of working has been explained.
Hence, unless you complete 5 years of service, i.e., from the date of joining to the date of discharge/release, you may not be eligible for gratuity. However, seniors are requested to comment.
Regards
From India, Mumbai
I agree with the comments of Mr. Premkumar Nair. Normally, employers would calculate 5 years from DOJ to DOL and not on a 240 working days per annum calculation. Since you will complete approximately 4.9 years up to 31.03.2013, it will make you unfit for receiving the gratuity amount.
From India, Mumbai
From India, Mumbai
I do agree with Mr.Prem Kr Nair, for first 5 yrs 240 days will not be considered except Tamilanadu state.........as a eligibily factor.............
From United States, Cambridge
From United States, Cambridge
Dear Maharajan,
To become eligible for gratuity, 5 years of service is required to be completed with the same employer. Once 5 years are completed, then only the question of part of the year comes into play. So, unless a complete 5 years is achieved, no gratuity payment is due. However, even if any company pays such an amount, it would be considered ex-gratia and will be fully taxable in income tax.
Thanks, Pankaj CA
From India, New Delhi
To become eligible for gratuity, 5 years of service is required to be completed with the same employer. Once 5 years are completed, then only the question of part of the year comes into play. So, unless a complete 5 years is achieved, no gratuity payment is due. However, even if any company pays such an amount, it would be considered ex-gratia and will be fully taxable in income tax.
Thanks, Pankaj CA
From India, New Delhi
Dear Maharajan,
I can tell you for sure that P. Xavier Raj is correct. In most companies, gratuity is kept with LIC, which handles the disbursement. Four years and 240 days are what is required, and in your case, if on the date of leaving you have crossed 240 days, you are entitled to gratuity. LIC has made payments to our employees who have complied with this.
Thanks,
Denzil
From India, Mumbai
I can tell you for sure that P. Xavier Raj is correct. In most companies, gratuity is kept with LIC, which handles the disbursement. Four years and 240 days are what is required, and in your case, if on the date of leaving you have crossed 240 days, you are entitled to gratuity. LIC has made payments to our employees who have complied with this.
Thanks,
Denzil
From India, Mumbai
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