I worked in a company from 12/02/2008 till 07/10/2013. Am I eligible for gratuity?
I rejoined the same company on 12/16/2013 and went on maternity leave on 04/04/2019. Since I had adopted a child less than 3 months old, I was entitled to only 12 weeks ML (till 07/04/2020). However, my employer accommodated me and allowed me to extend my ML until my baby was a year old. I was supposed to return to work in April 2020. Due to the Covid-19 situation, they requested me to wait until everything settled before returning (all communication was verbal and through text messages, no emails). In August, my HR contacted me and suggested that I resign since there was not much work, and I agreed since I wanted to dedicate more time to my child.
I know I am eligible for gratuity. But until what date?
Please help. Thank you for your time and patience.
Anu
From India, Bengaluru
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I rejoined the same company on 12/16/2013 and went on maternity leave on 04/04/2019. Since I had adopted a child less than 3 months old, I was entitled to only 12 weeks ML (till 07/04/2020). However, my employer accommodated me and allowed me to extend my ML until my baby was a year old. I was supposed to return to work in April 2020. Due to the Covid-19 situation, they requested me to wait until everything settled before returning (all communication was verbal and through text messages, no emails). In August, my HR contacted me and suggested that I resign since there was not much work, and I agreed since I wanted to dedicate more time to my child.
I know I am eligible for gratuity. But until what date?
Please help. Thank you for your time and patience.
Anu
From India, Bengaluru
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Hi Anu,
Regarding gratuity for the first spell i.e. 2.12.2008 till 10.7.2013 - if you have a continuous service of 4 years + 240 days during the 5th year, uninterrupted service, you are eligible to receive the gratuity under the Gratuity Act. This is not considering your 2nd spell. Then,
It's not clear whether you have left the very same company on 10.7.2013? Resigned or otherwise? Subject to confirmation of this fact, it's presumed there is a gap in service between 10.7.13 and 16.12.2013 (DoRJ) i.e. about 5 months, hence your service has been interrupted. If yes, this 2nd spell cannot be combined with the first spell of 4 years + >240 days.
Having availed maternity leave from 4.4.2019 to 4.7.2020 and even if treated as continued till date (since no mention about effective rejoining after maternity leave), the required service of 5 years and above can be considered as eligible for the 2nd spell, i.e. 16.12.13 to 4.7.2020 as well. It's necessary to determine the effective date of separation for the 2nd spell before ascertainment.
However, if there is a possibility to consider your case under the new Labour Codes, still to be implemented, the perception is likely to change.
From India, Bangalore
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1272Regarding gratuity for the first spell i.e. 2.12.2008 till 10.7.2013 - if you have a continuous service of 4 years + 240 days during the 5th year, uninterrupted service, you are eligible to receive the gratuity under the Gratuity Act. This is not considering your 2nd spell. Then,
It's not clear whether you have left the very same company on 10.7.2013? Resigned or otherwise? Subject to confirmation of this fact, it's presumed there is a gap in service between 10.7.13 and 16.12.2013 (DoRJ) i.e. about 5 months, hence your service has been interrupted. If yes, this 2nd spell cannot be combined with the first spell of 4 years + >240 days.
Having availed maternity leave from 4.4.2019 to 4.7.2020 and even if treated as continued till date (since no mention about effective rejoining after maternity leave), the required service of 5 years and above can be considered as eligible for the 2nd spell, i.e. 16.12.13 to 4.7.2020 as well. It's necessary to determine the effective date of separation for the 2nd spell before ascertainment.
However, if there is a possibility to consider your case under the new Labour Codes, still to be implemented, the perception is likely to change.
From India, Bangalore
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On 10/07/2013, I was relieved. It’s 222 Days in the 5th year so I assume I’m not eligible.
And on 16/12:2013 I rejoined, considered as a new employment.
Now after I went on ML, I didn’t resume to duty. My 12 weeks ML exhausted in July but I with permission from my boss extended it till April 2020 on Phone and email. But in April 2020, due to the covid situation, they asked me to not join and wait it out.
In august, they asked me to resign, I sent an email. And they officially relieved me on 25/08/2020.
From India, Bengaluru
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And on 16/12:2013 I rejoined, considered as a new employment.
Now after I went on ML, I didn’t resume to duty. My 12 weeks ML exhausted in July but I with permission from my boss extended it till April 2020 on Phone and email. But in April 2020, due to the covid situation, they asked me to not join and wait it out.
In august, they asked me to resign, I sent an email. And they officially relieved me on 25/08/2020.
From India, Bengaluru
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Thank you Mr. Kumar for taking the time to write. Also, may I please ask what are the new labor codes that you’ve mentioned?
From India, Bengaluru
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From India, Bengaluru
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Yes, for the 2nd spell, 6 yr + >6 months = 7 yrs, gratuity is payable to you.
Please read the attached materials on New Labour codes awaiting notification of the effective date after completing other formalities. These 4 Labour Codes comprise many rationalizations of various provisions and will replace and subsume many labour-related Acts/laws currently in effect. There are provisions that ultimately favor labor reforms, while on the other hand, some provisions are not as pro-labor. You can find a summary in the attachment. For detailed reading, you can log in to the website of the Labour Dept. GoI, where gazetted notifications can be downloaded.
From India, Bangalore
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Please read the attached materials on New Labour codes awaiting notification of the effective date after completing other formalities. These 4 Labour Codes comprise many rationalizations of various provisions and will replace and subsume many labour-related Acts/laws currently in effect. There are provisions that ultimately favor labor reforms, while on the other hand, some provisions are not as pro-labor. You can find a summary in the attachment. For detailed reading, you can log in to the website of the Labour Dept. GoI, where gazetted notifications can be downloaded.
From India, Bangalore
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Thanks for all the material. I’ll definitely go through them. I’d a quick question though...
For the second spell, I was told by my HR that I’m entitled for gratuity only till my 04/07/20219. Since I was on an extended ML, the period from July 2019 till august 2020, isn’t considered. Is that correct?
From India, Bengaluru
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For the second spell, I was told by my HR that I’m entitled for gratuity only till my 04/07/20219. Since I was on an extended ML, the period from July 2019 till august 2020, isn’t considered. Is that correct?
From India, Bengaluru
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Your service particulars are -
For the 1st spell you missed the gratuity by about 18 days.
But for the 2nd spell – Served from 16.12.2013 to 3.4.2019
ML from 4.4.2019 to 16.6.2019 (4.7.2020) 12 weeks of entitlement upto only 16.6.2019 (extended from 17.6.19 to 4.7.20; 24.3.20 to April 20 Covid pandemic lockdown but not stated whether salary was paid or not.)
On extended leave (LWP) = from 17.6.2019 to 4.7.2020 (not reported/not worked)
Unclassified absence/leave = 5.7.20 to 25.8.2020
Relieved on 25.8.2020
It's understood that your office grant leave upto 4.7.20 which means period from 4.7.20 till your relieving date 25.8.20 has been treated 'leave of absence' not entitled to salary or unpaid leave. In effect your service has been closed on 3.7.20 itself that's why gratuity has been considered upto 4.7.20 only. You have not indicated whether you got the salary from 4.4.2019 onwards said to be on permitted leave. Having completed full 5 yrs you are eligible but to become eligible for the 6th year service you are short of stipulated 6 months.
Can you check whether your relieving letter is dated 25.8.20 or stated as 'relieved on 25.8.20'. In any case it appears your service has been discontinued on 4.7.20.
From India, Bangalore
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For the 1st spell you missed the gratuity by about 18 days.
But for the 2nd spell – Served from 16.12.2013 to 3.4.2019
ML from 4.4.2019 to 16.6.2019 (4.7.2020) 12 weeks of entitlement upto only 16.6.2019 (extended from 17.6.19 to 4.7.20; 24.3.20 to April 20 Covid pandemic lockdown but not stated whether salary was paid or not.)
On extended leave (LWP) = from 17.6.2019 to 4.7.2020 (not reported/not worked)
Unclassified absence/leave = 5.7.20 to 25.8.2020
Relieved on 25.8.2020
It's understood that your office grant leave upto 4.7.20 which means period from 4.7.20 till your relieving date 25.8.20 has been treated 'leave of absence' not entitled to salary or unpaid leave. In effect your service has been closed on 3.7.20 itself that's why gratuity has been considered upto 4.7.20 only. You have not indicated whether you got the salary from 4.4.2019 onwards said to be on permitted leave. Having completed full 5 yrs you are eligible but to become eligible for the 6th year service you are short of stipulated 6 months.
Can you check whether your relieving letter is dated 25.8.20 or stated as 'relieved on 25.8.20'. In any case it appears your service has been discontinued on 4.7.20.
From India, Bangalore
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The company paid me only till my entitled ML. From 04/07/2019, till the date I was relieved, I haven’t received any salary. It was LWP.
My HR said, my gratuity will be calculated only till 04/07/2019. Not till 2020. Please clarify if I am entitled till 2020 or only till 04/07/2019?
Thanks again for the help.
From India, Bengaluru
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My HR said, my gratuity will be calculated only till 04/07/2019. Not till 2020. Please clarify if I am entitled till 2020 or only till 04/07/2019?
Thanks again for the help.
From India, Bengaluru
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The company has relieved you only on 25.08.2020. That means your continuous service is till that date, although you have been paid only till 04.07.2019. The definition of continuous service includes a period of absence as long as it is uninterrupted service. So you are entitled to gratuity till 25.08.20. Accordingly, you are entitled to seven years of gratuity.
From India, Mumbai
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From India, Mumbai
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Thank you for clarifying that for me!
Now, if I may, please ask for some more help here. May I ask you to help me with the information on which codes or rules to mention specifically to support my stand about the 7 years gratuity?
Thanks again for all your time and help; I appreciate it.
From India, Bengaluru
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Now, if I may, please ask for some more help here. May I ask you to help me with the information on which codes or rules to mention specifically to support my stand about the 7 years gratuity?
Thanks again for all your time and help; I appreciate it.
From India, Bengaluru
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx