I am a fixed-term contract employee in a private limited company. My contract period is for 1 year. My CTC, as per the offer letter, included gratuity. I have resigned from service just 15 days short of the completion of the 1-year contract period. Am I eligible for gratuity as per the Gratuity Payments Act of the Government of India?
From India, Ernakulam
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From India, Ernakulam
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Hi,
"The Payment of Gratuity Act, 1972, states that an employee is eligible to get gratuity only after he or she has worked with an organization for at least five years."
Since you have worked for less than a year, you are not eligible for gratuity.
The employee stands to receive the gratuity amount on his or her superannuation, or at the time of retirement or resignation. However, it must be noted that there is an exception where the condition of working for five straight years with a firm does not apply. In the event that an employee becomes disabled or passes away, the law mandates that the employer pay the gratuity to the employee or his or her nominee, regardless of the number of years of continuous service.
Please note that it has to be continuous service with the same employer of at least 5 years.
From India, Mettupalayam
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27"The Payment of Gratuity Act, 1972, states that an employee is eligible to get gratuity only after he or she has worked with an organization for at least five years."
Since you have worked for less than a year, you are not eligible for gratuity.
The employee stands to receive the gratuity amount on his or her superannuation, or at the time of retirement or resignation. However, it must be noted that there is an exception where the condition of working for five straight years with a firm does not apply. In the event that an employee becomes disabled or passes away, the law mandates that the employer pay the gratuity to the employee or his or her nominee, regardless of the number of years of continuous service.
Please note that it has to be continuous service with the same employer of at least 5 years.
From India, Mettupalayam
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It looks ridiculous to include gratuity in CTC for a fixed-term appointment for one year. This is quite misleading, and the organization is actually trying to deceive people in attracting them for employment like this. The eligibility for gratuity in such cases would come once the new Labour Codes come into effect. (From 1st April 2022 as it appears now) For the present, it is not applicable.
From India, Mumbai
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From India, Mumbai
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Fixed Term Contract Employees to get Gratuity.docx
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Fixed term employment.pdf