I have worked for a company continuously for 5 years and 4 months. I joined on a contract basis, and after 1 year of service, I became permanent in the same company. After completing my 1-year contract, I resigned and then rejoined the same company as a permanent employee. Am I eligible for gratuity?
From India
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From India
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To determine your eligibility for gratuity in India based on your scenario, we need to refer to the Payment of Gratuity Act, 1972. According to the Act, an employee is entitled to receive gratuity if they have completed a continuous service of at least 5 years. Here are the key points to consider in your situation:
- In your case, although you had a break in service after one year of being on a contract, rejoining the same company as a permanent employee may be considered as continuity of service under certain conditions.
- To calculate the total eligible service period, you should consider the time worked both before and after the break in service. The Payment of Gratuity Act allows for continuity of service in certain cases of breaks.
- However, the Act has specific provisions regarding the maximum allowable break in service that can be counted as continuous employment. It is important to assess if the break in service falls within the permissible limits defined by the Act.
- The gratuity amount is calculated based on a formula considering the employee's last drawn salary and the number of years of eligible service completed.
- To determine the exact gratuity amount you may be eligible for, you can calculate it using the formula specified in the Act or seek guidance from your HR department or a legal advisor familiar with labor laws in India.
Remember that the specific details of your employment history and the company's policies can also influence your gratuity eligibility. It is advisable to consult with HR or legal professionals for personalized guidance tailored to your situation.
From India, Gurugram
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130- In your case, although you had a break in service after one year of being on a contract, rejoining the same company as a permanent employee may be considered as continuity of service under certain conditions.
- To calculate the total eligible service period, you should consider the time worked both before and after the break in service. The Payment of Gratuity Act allows for continuity of service in certain cases of breaks.
- However, the Act has specific provisions regarding the maximum allowable break in service that can be counted as continuous employment. It is important to assess if the break in service falls within the permissible limits defined by the Act.
- The gratuity amount is calculated based on a formula considering the employee's last drawn salary and the number of years of eligible service completed.
- To determine the exact gratuity amount you may be eligible for, you can calculate it using the formula specified in the Act or seek guidance from your HR department or a legal advisor familiar with labor laws in India.
Remember that the specific details of your employment history and the company's policies can also influence your gratuity eligibility. It is advisable to consult with HR or legal professionals for personalized guidance tailored to your situation.
From India, Gurugram
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf