Dear All,
I have a concern with my current company regarding gratuity eligibility. I was appointed on 25-Jun-2014 as a DET (Diploma Engineer Trainee). Now, I have completed 5 years, 8 months, and 25 days, including my 1 year of training in the beginning, which was not under the Apprentice Act.
Will I be eligible for gratuity? The HR person is saying that the 1 year of training will not be counted. Please help me understand this situation. I anticipate your favorable response at the earliest.
Thanks,
From India, Jalalpur
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I have a concern with my current company regarding gratuity eligibility. I was appointed on 25-Jun-2014 as a DET (Diploma Engineer Trainee). Now, I have completed 5 years, 8 months, and 25 days, including my 1 year of training in the beginning, which was not under the Apprentice Act.
Will I be eligible for gratuity? The HR person is saying that the 1 year of training will not be counted. Please help me understand this situation. I anticipate your favorable response at the earliest.
Thanks,
From India, Jalalpur
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Dear friend,
An employee is entitled to gratuity on termination of his/her employment due to any reason mentioned under Section 4(1) of the Payment of Gratuity Act, 1972, including the period spent as a trainee. According to the judgment of the honorable High Court of Orissa in CMD, Orissa Mining Corporation v Controlling Authority (1995(1) LLJ 381), the term "employee" under Section 2(e) of the Payment of Gratuity Act, 1972, includes trainees as well. Therefore, you are entitled to gratuity right from the date of your entry into the organization as a trainee. It may be the personal view of the HR due to his superfluous understanding of the definition. I recommend approaching the management with a copy of the above judgment.
Thank you.
From India, Salem
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6185An employee is entitled to gratuity on termination of his/her employment due to any reason mentioned under Section 4(1) of the Payment of Gratuity Act, 1972, including the period spent as a trainee. According to the judgment of the honorable High Court of Orissa in CMD, Orissa Mining Corporation v Controlling Authority (1995(1) LLJ 381), the term "employee" under Section 2(e) of the Payment of Gratuity Act, 1972, includes trainees as well. Therefore, you are entitled to gratuity right from the date of your entry into the organization as a trainee. It may be the personal view of the HR due to his superfluous understanding of the definition. I recommend approaching the management with a copy of the above judgment.
Thank you.
From India, Salem
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Gratuity Query
With regard to gratuity, there is a difference between an "apprentice" and a "trainee." If you are an "apprentice" as per the definition under the Apprenticeship Act, then your training period is not included for calculating the entire service period. But if you are a "trainee," then you can file a claim for including the training period in the entire service period, subject to the provisions of your employment agreement/appointment letter.
From India, Pune
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With regard to gratuity, there is a difference between an "apprentice" and a "trainee." If you are an "apprentice" as per the definition under the Apprenticeship Act, then your training period is not included for calculating the entire service period. But if you are a "trainee," then you can file a claim for including the training period in the entire service period, subject to the provisions of your employment agreement/appointment letter.
From India, Pune
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Dear Sir, I have completed 4 years and 6 months in pvt company. Am i eligible to get gratuity benefit? Pl. guide. N. Devashree
From India, Pune
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From India, Pune
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Rule for gratuity is 5 years of continuous service. So please wait for full 5 years before submitting resignation or quitting the company.
From India, Pune
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From India, Pune
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It is 4 years and 240 days to be served for being eligible for Gratuity.
. "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 25 days (even if your training period is excluded) is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
From India, New Delhi
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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 25 days (even if your training period is excluded) is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."
From India, New Delhi
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Less than 5 years service - Eligibility for payment of gratuity.pdf