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Gratuity - Calculation Of Gratuity [Thread 47537] - CiteHR

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kanchi
Hi,
I have worked with my previous employer for a period of 5 years and four months. On claiming gratuity i was informed that the first year of employment will not be considered for calculation of gratuity as i was at the post of "management trainee". (post that i was promoted to assisstant manager).
The previous employer contends that gratuity is not payable as i have not completed 5 years as a permanent employee. Our staff rules/company guidelines also do not mention anything like this.Can i claim gratuity legally ? Kindly advise.
Regards,
kanchi.

From United Kingdom
Sunil Joshi
16

Hi Kanchi,
As per section 2 (e) of the payment of gratuity act except for an apprentice, appointed under the apprentices act, every other person employed by the organisation is eligible to claim gratuity on completion of 5 years of continuous service.
Best wishes,
Sunil Joshi
PGCHRM - XLRI

From United States, Bedford
Raj Meritech
5

Dear,
you worked one year as a trainee. So you worked as a employee 4 years and 4 months and you did not completed 5 years of continue job in that organization so you are not entitled for gratuity.
Thanks
Raj

From India, Gurgaon
Sunil Joshi
16

Hi Raj,
So far an employee is not an apprentice, s/he is eligible for gratuity on completion of 5 years of continuous service.
"Trainee is not an apprentice"
this what the labour court cited in a case Chairman cum Managing director, Orrisa mining corporation vs controlling authority, assistant labour commissioner & others. 1994 LLR(Labour Law Review), 789
Best wishes,
Sunil Joshi
PGCHRM - XLRI

From United States, Bedford
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