An employee joined our organisation on his 55th year of age and now due for retirement after 3 years of his service with us Is he eligible for gratuity ?
From India, Mumbai
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no he will be eligible for gratuity under payment of gratuity act. but employer can pay him ex-gratia.
From India, Pune
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Dear, As per Gratuity Act an employee should render continuous service for not less than five year to avail the gratuity,so the employee is not eligible for gratuity.
From India, New Delhi
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Dear Friend,

As you are aware, as per the gratuity rule, an employee is entitled to gratuity upon completion of 5 years of service in a normal case. However, if the employee is asked to leave for any reason, even before completing 5 years but after 3 years of service, that employee is still entitled to gratuity.

Thank you.

From India, Mumbai
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How to calculate gratuity if employee has worked for 10 years and 7 months continuously
From India, Surat
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10 years and 7 months will be considered as 11 years under PGA
From India, Pune
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Dear Tannex,

As per the Payment of Gratuity Act, 1972, an employee should have rendered continuous service for not less than five years to avail of the gratuity. However, the completion of five years is not necessary where the termination of employment is due to death or disablement. Thus, the individual you have mentioned shall not be eligible for the payment of gratuity.

BS Kalsi
Member since Aug 2011

From India, Mumbai
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Dear Member,

Which of the rules (Central or State) states that if an employee is terminated or asked to leave upon completion of 3 years of service, then that employee is entitled to gratuity?

R.N.KHOLA
(M) 09810405361
Welcome Skylark Associates


From India, Delhi
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Dear Sh. Desai Ji,

I want to draw your attention to your yesterday's mail where you mentioned that "an employee is entitled to gratuity on completion of 5 years of service in a normal case, but if the employee is asked to leave or due to any reason, if an employee is dismissed after completing 3 years of service, then that employee is entitled to gratuity." I would like to clarify that an employee is not entitled to gratuity in a normal case, but only upon termination of employment after completing continuous service for not less than five years: (i) on superannuation, (ii) on retirement or resignation, or (iii) on death or disablement due to accident or disease.

I am sorry I have not been able to find the provisions where an employee is entitled to gratuity if asked to leave or dismissed for any reason after completing 3 years of service. I would appreciate it if you could enlighten me on the provisions existing in the Payment of Gratuity Act, 1972, or Rules.

Regards,

BS Kalsi
Member since Aug 2011

From India, Mumbai
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Dear Minayan Desai, Pl clarify under what provision of the Act any employee with 3 years or less service is paid gratuity and where it is being in practice as stated by you.
From India, Selam
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