In a 5 days/week work pattern, will I get gratuity if I leave company in exact 4 years and 9 months?
From India, Pune
From India, Pune
3251
I have been offered a very good opportunity from another company. I'll recover the gratuity amount in 2-3 months anyway if I take the offer.
But, 4.9 years is a big term, and gratuity is part of my salary, so I do not want to miss out on it.
From India, Pune
But, 4.9 years is a big term, and gratuity is part of my salary, so I do not want to miss out on it.
From India, Pune
Though it was a 5-day workweek, you have been in continuous service for more than 4 years and 240 days. Undoubtedly, you are entitled to gratuity as per the Payment of Gratuity Act (PGA). To clarify, the 240 days of continuous service include the weekly holiday and other paid leaves.
From India, Mumbai
From India, Mumbai
The rule states 5 years of continuous service. If the lawmakers meant 4 years and 240 days, they would have said so. As far as I can understand from the letter and the spirit of the Act, a time period of 5 years should be there between the start and end of the employment, during which time one should have worked a minimum of 240 days during each year for it to be considered as a completed year. Beyond completed 5 years, that is in the sixth year onwards, if one works 240 days, that year is considered as a completed year.
From India, Kolkata
From India, Kolkata
Correction to my previous post: If an employee completes more than 6 months after completing 5 years of continuous service, it is considered a completed year. 4 years and 9 months of continuous service are considered as such, but not as 5 years of continuous or completed service. Where an employee has not been in continuous service during any year within any period of his employment, it will be considered as 'continuous' service if he has worked for 240 days during that period. The 240-day rule applies only when an employee has had a break in service for some days due to any reason but has completed a 12-month period on the payroll. The 240-day applicability is solely for determining 'continuous' service, not a 'completed year' of service.
From India, Kolkata
From India, Kolkata
The legal position is settled after the judgement of High Court of Madras in Mettur Beardsell Ltd. Vs. The Authority under PGA 1998 LLR 1072. Section 4 of the Payment of Gratuity Act, 1972 provides that an employee will be entitled to gratuity on completion of continuous service of 5 years and while clarifying the 5 years complete service Madras High Court while relying upon the clarification by the Supreme Court pertaining to 240 working days in one year will be deemed to be continuous service of one year meaning thereby that there need not be complete 12 calendar months' service. MADRAS HIGH COURT has further held that an employee, who has put in service of 4 Years 10 Months and 18 Days in the 5 years, will be entitled to gratuity.
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 principle can be adopted under the PG 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, Mumbai
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 principle can be adopted under the PG 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, Mumbai
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