Hi,
I joned the company on 07/07/2008.
I have resigned my job on 21/02/2013 and my notice period is 1 month and I will be relieving on 21/03/2013. I am going to complete my 4.8 years at 07/03/2013. Due to this notice period, Whether I am applicable for gratuity?
Kindly clarify ASAP.
Regards,
Maharajan
From United States, Redwood City
I joned the company on 07/07/2008.
I have resigned my job on 21/02/2013 and my notice period is 1 month and I will be relieving on 21/03/2013. I am going to complete my 4.8 years at 07/03/2013. Due to this notice period, Whether I am applicable for gratuity?
Kindly clarify ASAP.
Regards,
Maharajan
From United States, Redwood City
You may check your working days during ( from 07.07.2012 to 21.03.2013) more than 240 days you are eligible to claim Gratuity. P. Xavier Raj
From India, Pondicherry
11From India, Pondicherry
Hi Xavier,
Thanks for your response.
If I am calculating my working days from 07/07/2012 to 21/03/2013 (last day of a company) as you said, it will cross the 240 days only.
But the problem is I am serving the notice period from 21-Feb-2013.
I will touch the 4.8 years at 07-Mar-2013.
That's the reason I asked whether I am eligible if I crossed the 4.8 years in the middle of the notice period?
Regards,
Maharajan
From United States, Redwood City
Thanks for your response.
If I am calculating my working days from 07/07/2012 to 21/03/2013 (last day of a company) as you said, it will cross the 240 days only.
But the problem is I am serving the notice period from 21-Feb-2013.
I will touch the 4.8 years at 07-Mar-2013.
That's the reason I asked whether I am eligible if I crossed the 4.8 years in the middle of the notice period?
Regards,
Maharajan
From United States, Redwood City
The Gratuity calculation taken from Joining date to Leaving date including notice period.
From India, Pondicherry
From India, Pondicherry
Dear Mr. Maharajan,
A person who has been in continuous service of 5 years is eligible for gratuity. The condition of 190/240 days of working is the explanation of continous service and, I feel, not for counting or completing first five years of service. (In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than (i) 190 days, if employed below the ground in a mine, or (ii) 240 days, in any other case, except when he is employed in a seasonal establishment.). The interruption here means in the form of strike, lay off, etc and hence the condition of days of working has been explained.
Hence, unless you complete 5 years of service, i.e. from the date of joining to the date of discharge/release, you may not be eligible to gratuity.
However, seniors are requested to comment.
Regards
From India, Mumbai
A person who has been in continuous service of 5 years is eligible for gratuity. The condition of 190/240 days of working is the explanation of continous service and, I feel, not for counting or completing first five years of service. (In the case of an employee who is not in uninterrupted service for one year, he shall be deemed to be in continuous service if he has been actually employed by an employer during the twelve months immediately preceding the year for not less than (i) 190 days, if employed below the ground in a mine, or (ii) 240 days, in any other case, except when he is employed in a seasonal establishment.). The interruption here means in the form of strike, lay off, etc and hence the condition of days of working has been explained.
Hence, unless you complete 5 years of service, i.e. from the date of joining to the date of discharge/release, you may not be eligible to gratuity.
However, seniors are requested to comment.
Regards
From India, Mumbai
I agree with the comments of Mr. Premkumar Nair. Normally employers would calculate 5 years from DOJ to DOL and NOT on 240 working days per annum calculation. Since you will complete approx. 4.9 years upto 31.03.2013, it will make you unfit for getting graduity amount.
From India, Mumbai
From India, Mumbai
I do agree with Mr.Prem Kr Nair, for first 5 yrs 240 days will not be considered except Tamilanadu state.........as a eligibily factor.............
From United States, Cambridge
From United States, Cambridge
Dear Maharajan,
to became eligible for grautity, 5 years service is required to be completed with the same employer,
once 5 years are completed, then only question of part of the year comes in play,
so unless complete 5 years, no grautity payment is due
However even if any company pays such amount, it would be called exgratia and will be fully taxable in income tax,
Thanks,
Pankaj
CA
From India, New Delhi
to became eligible for grautity, 5 years service is required to be completed with the same employer,
once 5 years are completed, then only question of part of the year comes in play,
so unless complete 5 years, no grautity payment is due
However even if any company pays such amount, it would be called exgratia and will be fully taxable in income tax,
Thanks,
Pankaj
CA
From India, New Delhi
Dear Maharajan
I can tell you for sure P.Xavier Raj is correct . In most companies gratuity is kept with LIC which does the disbursement. 4 years 240 day is what is required and in your case if on the date of leaving you have crossed 240 days you are entitled for gratuity. LIC has made payment to our employees who have complied with this.
Thanks
Denzil
From India, Mumbai
I can tell you for sure P.Xavier Raj is correct . In most companies gratuity is kept with LIC which does the disbursement. 4 years 240 day is what is required and in your case if on the date of leaving you have crossed 240 days you are entitled for gratuity. LIC has made payment to our employees who have complied with this.
Thanks
Denzil
From India, Mumbai
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Less than 5 years service - Eligibility for payment of gratuity.pdf