Dear Expert team,
I had worked in a private company for 4 years, 11 months, and 17 days. Am I eligible for gratuity? If yes, is there any legal document available from the government as my company is registered in West Bengal and has an office in Pune?
From India, Jaipur
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I had worked in a private company for 4 years, 11 months, and 17 days. Am I eligible for gratuity? If yes, is there any legal document available from the government as my company is registered in West Bengal and has an office in Pune?
From India, Jaipur
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Yes, you are eligible for gratuity as per the ratio decidendi of the interpretation of sec. 2-A of the PG Act, 1972 by the Madras High Court in Mettur Beardsell Ltd case.
That if an employee completes 240 days of continuous service in the fifth year of service in the same establishment, he is eligible for gratuity under the Act is the ruling of the Madras High Court. There is no contrary judgment by any other High Court on this issue so far. Moreover, as PGA, 1972 is a Central Act, the decision of a particular High Court will hold good across the country in the absence of a contrary decision by any other Court on the same issue.
From India, Salem
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6185That if an employee completes 240 days of continuous service in the fifth year of service in the same establishment, he is eligible for gratuity under the Act is the ruling of the Madras High Court. There is no contrary judgment by any other High Court on this issue so far. Moreover, as PGA, 1972 is a Central Act, the decision of a particular High Court will hold good across the country in the absence of a contrary decision by any other Court on the same issue.
From India, Salem
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Dear Sandesh,
As our Senior Member Umakanthan Sir has rightly stated, you are eligible for Gratuity Payment. However, it depends on the company's policy. Some companies follow Court Orders, while others adhere to the Payment of Gratuity Act, 1972, as it has not been amended yet.
If you have a good relationship with the company, they may consider your case. You may need to submit an application requesting them to sympathetically consider your case, providing a court order reference.
Suresh
From India, Thane
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As our Senior Member Umakanthan Sir has rightly stated, you are eligible for Gratuity Payment. However, it depends on the company's policy. Some companies follow Court Orders, while others adhere to the Payment of Gratuity Act, 1972, as it has not been amended yet.
If you have a good relationship with the company, they may consider your case. You may need to submit an application requesting them to sympathetically consider your case, providing a court order reference.
Suresh
From India, Thane
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Sorry, Suresh; no employer can substitute his own interpretation with the ratio decidendi of a case law and decide the issue in utter disregard of a High Court's ruling. If one dares to do so, he would be penalized with cost and the burden of interest for the unpaid period by the Controlling Authority under the PGA, 1972 later if a claim is filed by the aggrieved employee.
As the Madras High Court judgment is a result of an interpretative analysis of the existing definition of the term 'continuous service' u/s 2-A of the Act, it requires no amendment. Moreover, this judgment is in sync with the interpretation of the similar term u/s 25-B of the ID Act, 1947 by the Supreme Court earlier in several cases.
In case of refusal by the employer to pay gratuity, the poster can certainly get it with interest by filing a claim under the Act.
From India, Salem
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As the Madras High Court judgment is a result of an interpretative analysis of the existing definition of the term 'continuous service' u/s 2-A of the Act, it requires no amendment. Moreover, this judgment is in sync with the interpretation of the similar term u/s 25-B of the ID Act, 1947 by the Supreme Court earlier in several cases.
In case of refusal by the employer to pay gratuity, the poster can certainly get it with interest by filing a claim under the Act.
From India, Salem
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Dear Sandesh,
The first question is, why did you leave the service before completing the 5-year term as mandated by law for eligibility for Gratuity?
Your employer may not consider you eligible for gratuity because you have not completed five years of service, but rather worked for 4 years, 11 months, and 17 days.
You can approach your employer with the Madras High Court judgment in the Mettur Beardsell Ltd case if you are not considered for gratuity.
From India, Mumbai
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The first question is, why did you leave the service before completing the 5-year term as mandated by law for eligibility for Gratuity?
Your employer may not consider you eligible for gratuity because you have not completed five years of service, but rather worked for 4 years, 11 months, and 17 days.
You can approach your employer with the Madras High Court judgment in the Mettur Beardsell Ltd case if you are not considered for gratuity.
From India, Mumbai
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You are eligible for payment of gratuity , the eligibility conditions of employment should be 4 years+240 days whch is equals to 5 years of service. Thanks & Regards, from, Sumit Kumar Saxena
From India, Ghaziabad
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From India, Ghaziabad
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Dear Umakanthan Sir,
I just need a simple clarification and interpretation regarding the definition under the act:
(b) "completed year of service" means continuous service for one year;
(c) "continuous service" means continuous service as defined in section 2A;
Section 4 of the Payment of Gratuity Act states: (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
The interpretation is: Working for not less than five years, and all the completed years of service should be of a continuous nature. If this interpretation is incorrect, please correct me.
From India, Mumbai
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I just need a simple clarification and interpretation regarding the definition under the act:
(b) "completed year of service" means continuous service for one year;
(c) "continuous service" means continuous service as defined in section 2A;
Section 4 of the Payment of Gratuity Act states: (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
The interpretation is: Working for not less than five years, and all the completed years of service should be of a continuous nature. If this interpretation is incorrect, please correct me.
From India, Mumbai
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Gratuity Eligibility.pdf
Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx