Dear Sirs,
I worked with a private limited company from 01.10.2008 to 30.04.2013, completing 4 years and 7 months. At the time of my full and final settlement, the company deducted 25 days of salary as notice pay recovery because I had not completed the 2-month notice period.
Am I eligible to receive Gratuity? Please provide your valuable inputs.
Thanks with Best Regards,
Pankaj Patel
From India, Vadodara
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1I worked with a private limited company from 01.10.2008 to 30.04.2013, completing 4 years and 7 months. At the time of my full and final settlement, the company deducted 25 days of salary as notice pay recovery because I had not completed the 2-month notice period.
Am I eligible to receive Gratuity? Please provide your valuable inputs.
Thanks with Best Regards,
Pankaj Patel
From India, Vadodara
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The gratuity eligibility service as per Gratuity Act 1972 is 5 years.
From India, Madras
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From India, Madras
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Dear Pankaj ji, For your doubt you may please see the attachment case law of MADRAS HIGH COURT decision on GRATUITY. Regards, PBS KUMAR
From India, Kakinada
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From India, Kakinada
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Dear Pankaj The Eligibility criteria for Gratuity is 4 years and 240 days and if your organisation works for 5 days a week, the eligibility will be 4 years and 190 days. Regards, Mary
From India, Chennai
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From India, Chennai
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Dear Sir,
If you worked in Tamil Nadu, you are eligible for gratuity as per the Madras High Court verdict. If you belong to another state, you are not eligible for gratuity as you have not completed 5 years of service.
D. Gurumurthy HR & IR Consultant, Hyderabad.
From India, Hyderabad
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If you worked in Tamil Nadu, you are eligible for gratuity as per the Madras High Court verdict. If you belong to another state, you are not eligible for gratuity as you have not completed 5 years of service.
D. Gurumurthy HR & IR Consultant, Hyderabad.
From India, Hyderabad
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Dear Mr. Gugrumurthy ji & Pankaj ji,
Some more clarifications on Gratuity.:
Clarity between gratuity eligibility service (5 or 4.8 yrs)?
The gratuity eligibility service as per Gratuity Act 1972 is 5 years. But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.
"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 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
Quotation from the book:
Law Book (Bare Act,2004) i.e. The Payment of Gratuity Act,1972 (Publisher: Law Publishers () Pvt.Ltd. 18A-S.P.Marg,Post Box-1077,Allahabad-211 001. Phone:623735,623741 Fax-0532-622276.
1. 4 years and 6 months (190 days = 1 year) where the company follows 5 day a week.
2. 4 years and 8 months ( 240 days = 1 year) where the company follows 5 day a week.
Is eligible for gratuity.The payment of gratuity ( second amendment) act, 1984 clarifies this. One needs to calculate the no of years and service completion as follows.
A company which follows 5 day week
D.O.J : 1.05.2000
01.05.2000 to 30.04.2001 - worked for 190 days
01.05.2001 to 30.04.2002 - worked for 190days
If we go by the above formula and if the person does not have any break in service he will be eligible for gratuity on 01.11.2004 "
Non clarity of this rule has created confusion among a lot of employees. As some hear that some companies are following the 4 years 240 days rule, while some follow the 5 year rule. Please help remove this confusion so that nobody rights of gratuity are being compromised on.
Expert may please give his comments and advice to this form……..
Regards,
PBS KUMAR
From India, Kakinada
Acknowledge(0)Amend(0)
Some more clarifications on Gratuity.:
Clarity between gratuity eligibility service (5 or 4.8 yrs)?
The gratuity eligibility service as per Gratuity Act 1972 is 5 years. But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.
"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 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
Quotation from the book:
Law Book (Bare Act,2004) i.e. The Payment of Gratuity Act,1972 (Publisher: Law Publishers () Pvt.Ltd. 18A-S.P.Marg,Post Box-1077,Allahabad-211 001. Phone:623735,623741 Fax-0532-622276.
1. 4 years and 6 months (190 days = 1 year) where the company follows 5 day a week.
2. 4 years and 8 months ( 240 days = 1 year) where the company follows 5 day a week.
Is eligible for gratuity.The payment of gratuity ( second amendment) act, 1984 clarifies this. One needs to calculate the no of years and service completion as follows.
A company which follows 5 day week
D.O.J : 1.05.2000
01.05.2000 to 30.04.2001 - worked for 190 days
01.05.2001 to 30.04.2002 - worked for 190days
If we go by the above formula and if the person does not have any break in service he will be eligible for gratuity on 01.11.2004 "
Non clarity of this rule has created confusion among a lot of employees. As some hear that some companies are following the 4 years 240 days rule, while some follow the 5 year rule. Please help remove this confusion so that nobody rights of gratuity are being compromised on.
Expert may please give his comments and advice to this form……..
Regards,
PBS KUMAR
From India, Kakinada
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Mr. Gurumurthy, For your information , a decision by a High Court is valid throughout India How can you give such wrong information that it is valid only in a particular state ? Regards, India
From India, Hyderabad
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From India, Hyderabad
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Hello mr . Patel pankaj gratuity eligible for only 5 years of your service in any organization or firm . Its rule of govt .
From India, Tiruppur
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From India, Tiruppur
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Dear Sirs,
I worked with a private limited company from 04.01.2013 to 31.07.2017, completing 4 years, 6 months, and 26 days at the time of my full and final settlement with the company. Am I eligible to receive gratuity?
JAGDISH CHANDRA
From India, Delhi
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I worked with a private limited company from 04.01.2013 to 31.07.2017, completing 4 years, 6 months, and 26 days at the time of my full and final settlement with the company. Am I eligible to receive gratuity?
JAGDISH CHANDRA
From India, Delhi
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I worked in a company for more than 5 years. After termination, I requested the release of the Gratuity amount. However, the employer disagreed, making a point that during the one-year contract period, they broke my service for 2 or 3 days, and it would not come under continuous service. I heard somewhere that there is a Supreme Court judgment on this behalf.
Please advise.
Shiju N
From India, Alappuzha
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Please advise.
Shiju N
From India, Alappuzha
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