Hi, I have attained 58 years of age and will be retired after completing 4 years and 3 months of service in the current company. In such a situation am I eligible for gratuity? Request expert advice on this issue. Thanks.
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. The employee stands to receive the gratuity amount on his or her superannuation, or at the time of retirement or resignation. In your case it is 4.3 years and hence you are not eligible for Gratuity.
From India, Madras
952The 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. The employee stands to receive the gratuity amount on his or her superannuation, or at the time of retirement or resignation. In your case it is 4.3 years and hence you are not eligible for Gratuity.
From India, Madras
As per Sec.4 of the Payment of Gratuity Act, 1972, an employee is eligible to receive gratuity on termination of his or her employment after he or she has rendered continuous service of not less than five years
(a) on his superannuation; or
(b) on his retirement or resignation; or
(c) on his death or disablement due to accident or disease;
provided that the continuous service of five years is not necessary where the termination of employee is due to death or disablement.
However, the Madras High Court in Mettur Beardsell Vs. Regional Labour Commissioner (Authority under the Act) and Others has held that even if an employee works for 4 years and 240 days in the fifth year, he can be eligible for payment of gratuity under the Act. The Act says that it is five years of "continuous service" is defined under Sec. 2A of the Act.
Hence, with 4 years and 3 months, you will not be eligible for gratuity under the Act.
From India, Madras
(a) on his superannuation; or
(b) on his retirement or resignation; or
(c) on his death or disablement due to accident or disease;
provided that the continuous service of five years is not necessary where the termination of employee is due to death or disablement.
However, the Madras High Court in Mettur Beardsell Vs. Regional Labour Commissioner (Authority under the Act) and Others has held that even if an employee works for 4 years and 240 days in the fifth year, he can be eligible for payment of gratuity under the Act. The Act says that it is five years of "continuous service" is defined under Sec. 2A of the Act.
Hence, with 4 years and 3 months, you will not be eligible for gratuity under the Act.
From India, Madras
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf