Dear Friends,
One of my friends recently resigned his position as VP-Projects from a reputed Construction in Chennai.He served the company with distinction for 4 yrs and 10 months.However when he got relieved, he found out that the company is not paying him the gratuity claiming that he has not completed 5 yrs of service.I would want to know if he is eligible to get the gratuity and if yes what the are options he can have.I would also like to add here that the company has a Gratuity Trust managed by LIC.
Waiting for your early response.
Deepak P
Chennai.
From India, Chennai
2One of my friends recently resigned his position as VP-Projects from a reputed Construction in Chennai.He served the company with distinction for 4 yrs and 10 months.However when he got relieved, he found out that the company is not paying him the gratuity claiming that he has not completed 5 yrs of service.I would want to know if he is eligible to get the gratuity and if yes what the are options he can have.I would also like to add here that the company has a Gratuity Trust managed by LIC.
Waiting for your early response.
Deepak P
Chennai.
From India, Chennai
Dear Deepak
The 4 years and 240 days clause is applicable for those who are retired or died and not for resignation cases. For resignation cases 5 years of service is compulsory. Hence the person is not eligible to claim gratuity. The condoning or waiving of the period of 2 months will not applicable for resigned cases.
From India, Kumbakonam
The 4 years and 240 days clause is applicable for those who are retired or died and not for resignation cases. For resignation cases 5 years of service is compulsory. Hence the person is not eligible to claim gratuity. The condoning or waiving of the period of 2 months will not applicable for resigned cases.
From India, Kumbakonam
Dear Mr Deepak, Yes you are entitled for Gratuity even not less than 5 years service, Please find attached the judgment of Hon. Madras High court for Your reference. Thanks Sujeet
From India, Jaipur
From India, Jaipur
Dear Deepak,
Your friend is entitled to Gratuity because of a deeming clause of completion of service of 5 years. I advice you to serve a notice to the employer in Form "I" demanding amount of Gratuity for 5 years of service in the following manner:
Rate = Salary/26
Amount of Gratuity= 15 X 5 X Rate
In case no reply is received or your claim is rejected, approach the Controlling Authority under PG Act. In your state, Assistant Commissioner of Labour is the proper authority. File your claim in form "N" together with documents such as Appointment letter, salary slip, notice etc. I am sure you will have your claim.
In addition, you also can file a complaint to the Inspector under PG Act, who happens to be the Government Labour Officer
From India, Kolhapur
Your friend is entitled to Gratuity because of a deeming clause of completion of service of 5 years. I advice you to serve a notice to the employer in Form "I" demanding amount of Gratuity for 5 years of service in the following manner:
Rate = Salary/26
Amount of Gratuity= 15 X 5 X Rate
In case no reply is received or your claim is rejected, approach the Controlling Authority under PG Act. In your state, Assistant Commissioner of Labour is the proper authority. File your claim in form "N" together with documents such as Appointment letter, salary slip, notice etc. I am sure you will have your claim.
In addition, you also can file a complaint to the Inspector under PG Act, who happens to be the Government Labour Officer
From India, Kolhapur
Dear Mr. Deepak, As other members suggests, your friend entitled for Gratuity.even if he doesnt reaches 5 Years of tenure.it will be applicable only in chennai region.
From India, Hyderabad
From India, Hyderabad
No the employee is not eligible.
Eligibility criteria of gratuity is ,
1) Five years of continue service.
2) If the employee died within a minimum period (may be not completed in 5 years) is eligible.
From India, Chennai
Eligibility criteria of gratuity is ,
1) Five years of continue service.
2) If the employee died within a minimum period (may be not completed in 5 years) is eligible.
From India, Chennai
boss. As you have mentioned about 240 days clause applicable to only retired on completion of 4.10 yrs. Please provide the supporting document to all of us.
From India, Ahmadabad
From India, Ahmadabad
yes, he is eligible for completion for 4.10yrs. Service and contact to local inspector of factories and assistant labour commmisioner with relieved documents that reveal continued rendering of service.
From India, Ahmadabad
From India, Ahmadabad
Please check the attachment available in this thread which was attached by Sujeeti. In that High Court of Chennai has instructed to pay for the person who completed 4 years 10 months and 18 days. Normally the short period waiving off will be done for those who died or retired and not for those resigned. That waiving off procedure will be in the company HR Policy and not on any act or rules.
From India, Kumbakonam
From India, Kumbakonam
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Gratuity has to be paid after employee quits (TOI - 27-03-2021)_1.j pg
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc