Hi Members,
Is a person eligible for Gratuity after completing 4 years and 183 days of continuous service in one company? I did my research and found mixed answers. Some say eligible and some say not eligible. The company says not eligible. The company states that a person has to serve 4 years and 240 days to be eligible for gratuity. According to the Gratuity Act, is the person authorized for gratuity payment with 4 years and 183 days of continuous service? Please advise.
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Is a person eligible for Gratuity after completing 4 years and 183 days of continuous service in one company? I did my research and found mixed answers. Some say eligible and some say not eligible. The company says not eligible. The company states that a person has to serve 4 years and 240 days to be eligible for gratuity. According to the Gratuity Act, is the person authorized for gratuity payment with 4 years and 183 days of continuous service? Please advise.
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What you have mentioned in the 2nd paragraph of your post is correct. A person has to complete 4 years of continuous service, and in the 5th year, he has to complete 240 days of working (including weekly off, his paid leave period, company's paid holidays, etc.) to become eligible for gratuity payment.
From India, Aizawl
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699From India, Aizawl
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Thank you for the response, P. Radhakrishnan Nair.
What happens to the gratuity amount which is part of my CTC at a private IT firm? When I was given the offer, the gratuity amount was shown as part of the CTC. Will I not receive it because I am not fulfilling my eligibility criteria, or is there a way to receive that amount since it was shown as part of my CTC?
Also, I came across this article - do you think it's true - https://www.zeebiz.com/personal-fina...-answer-119391
Please let me know.
Thanks and Regards,
John
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What happens to the gratuity amount which is part of my CTC at a private IT firm? When I was given the offer, the gratuity amount was shown as part of the CTC. Will I not receive it because I am not fulfilling my eligibility criteria, or is there a way to receive that amount since it was shown as part of my CTC?
Also, I came across this article - do you think it's true - https://www.zeebiz.com/personal-fina...-answer-119391
Please let me know.
Thanks and Regards,
John
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Hi John,
As Mr. Rkn indicated, eligibility for gratuity payment arises only after an employee has completed 4 years and 240 days of 'continuous service' criteria. There is also a viewpoint suggesting that, for the purpose of calculating one year of service, 6 months can be rounded off to one year. However, this perspective has not been widely accepted or implemented. It is worth noting that 'CTC' and gratuity are considered part of the package but are not legally recognized as service conditions in our country. Therefore, completing 240 days of service in the 5th year is currently the valid requirement.
Your query regarding CTC has been a topic of discussion in other threads within this forum numerous times. To access these discussions, you can utilize the 'search topic/file' box above.
Thank you.
From India, Bangalore
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As Mr. Rkn indicated, eligibility for gratuity payment arises only after an employee has completed 4 years and 240 days of 'continuous service' criteria. There is also a viewpoint suggesting that, for the purpose of calculating one year of service, 6 months can be rounded off to one year. However, this perspective has not been widely accepted or implemented. It is worth noting that 'CTC' and gratuity are considered part of the package but are not legally recognized as service conditions in our country. Therefore, completing 240 days of service in the 5th year is currently the valid requirement.
Your query regarding CTC has been a topic of discussion in other threads within this forum numerous times. To access these discussions, you can utilize the 'search topic/file' box above.
Thank you.
From India, Bangalore
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Thank you, Kumar.
A couple of days ago, there was news concerning labor reforms related to the Gratuity law. The reform states that the current 5 years will be reduced to a lower figure. If the reform comes into action, can employees go back to their past employers and claim gratuity if they meet the period criteria of the reform? Like in my case, will I be able to go back to my employer and ask for my gratuity once the gratuity reform is passed?
[URL] https://trak.in/tags/business/2020/08/12/employees-can-soon-get-gratuity-within-1-3-years-instead-of-5-years-as-part-of-labor-reforms/
Thank you,
John
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A couple of days ago, there was news concerning labor reforms related to the Gratuity law. The reform states that the current 5 years will be reduced to a lower figure. If the reform comes into action, can employees go back to their past employers and claim gratuity if they meet the period criteria of the reform? Like in my case, will I be able to go back to my employer and ask for my gratuity once the gratuity reform is passed?
[URL] https://trak.in/tags/business/2020/08/12/employees-can-soon-get-gratuity-within-1-3-years-instead-of-5-years-as-part-of-labor-reforms/
Thank you,
John
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Dear John,
Much remains as mere talks. Unless it takes the shape of a law or amendment to existing provisions, the present stipulation will only continue.
Any amendments, as we discussed, will only reveal the beneficiaries if and when introduced. At this point in time, we can't speculate on whether the amendments will be effective from a prospective date or a retrospective date. There are many ifs and buts. To be frank, if it's implemented with retrospective effect, you will be one of the luckiest persons on earth. The only option is to keep praying.
Thank you.
From India, Bangalore
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Much remains as mere talks. Unless it takes the shape of a law or amendment to existing provisions, the present stipulation will only continue.
Any amendments, as we discussed, will only reveal the beneficiaries if and when introduced. At this point in time, we can't speculate on whether the amendments will be effective from a prospective date or a retrospective date. There are many ifs and buts. To be frank, if it's implemented with retrospective effect, you will be one of the luckiest persons on earth. The only option is to keep praying.
Thank you.
From India, Bangalore
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John,
I am also giving a link where you will find many discussions on the subject and opinions/views of our learned experts on this matter.
https://www.citehr.com/260004-gratui...ce-period.html
From India, Aizawl
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I am also giving a link where you will find many discussions on the subject and opinions/views of our learned experts on this matter.
https://www.citehr.com/260004-gratui...ce-period.html
From India, Aizawl
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Thanks for your response Kumar. Lets wait and hope its applicable in the retrospective manner also. Cheers! Have a great weekend. Stay safe. Regards, John
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As an addendum to my earlier post, I have gone through the link given by you. So far, the same is not implemented. Lets hope for the best.
From India, Aizawl
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From India, Aizawl
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Less than 5 years service - Eligibility for payment of gratuity.pdf