Dear All, I joined my company on 05-10-2009 and leaving on 25-07-2014 (Shortfall of 72 days for 5 years term). Our office works 5 days a week with Saturday and Sunday holidays. Am I eligible for applying for gratuity? If yes, what is the procedure?
From India, Hyderabad
From India, Hyderabad
Hi,
You are eligible for Gratuity after completion of 5 years, then only you are liable to take the benefit of gratuity.
Graduity calculation:- Last month salary drawn*15*no. of years service completed/26
From India, Mumbai
427You are eligible for Gratuity after completion of 5 years, then only you are liable to take the benefit of gratuity.
Graduity calculation:- Last month salary drawn*15*no. of years service completed/26
From India, Mumbai
As per section 2-A. point a(i) Continuous service of Payment of Gratuity Act. 1972 if employee works for 240 days in a year then he completes 1 year of continuous service.
If you have completed 240 days in 5th year then you are eligible. these 240 days include Actual working days+ Approved leave days
From India, Mumbai
If you have completed 240 days in 5th year then you are eligible. these 240 days include Actual working days+ Approved leave days
From India, Mumbai
Very strictly speaking this 240 days is for casual employees with whom there will not be any employee employer relationship on the days on which the employee was absent. In respect of permanent employees the employee employer relationship is deemed to exist even if the employee is on leave. That is why only leave without approval (the days the employee remained absent without any knowledge of employer) is taken as break in service and all leave days whether paid leaves or unpaid leaves WITH THE APPROVAL of the employer are counted as days worked for the purpose of calculating gratuity.
Therefore, in respect of regular employees, 5 years continuous service is mandatory. The qualifications as to 240 days above the ground and 190 days below the ground are conditions deciding whether there was continuous service and will be taken in to account when there is disputes with regard to permanency. Therefore, a casual/ badli employee is in continuous service if he has worked for 240 days in a year and so on and this need not necessarily be applied in all the cases. In Metur Bearsel's case, the Madras High Court has held that the service of 240 days in the fifth year will make the employee eligible to gratuity, it can not be generalised in all the cases.
Madhu.T.K
From India, Kannur
Therefore, in respect of regular employees, 5 years continuous service is mandatory. The qualifications as to 240 days above the ground and 190 days below the ground are conditions deciding whether there was continuous service and will be taken in to account when there is disputes with regard to permanency. Therefore, a casual/ badli employee is in continuous service if he has worked for 240 days in a year and so on and this need not necessarily be applied in all the cases. In Metur Bearsel's case, the Madras High Court has held that the service of 240 days in the fifth year will make the employee eligible to gratuity, it can not be generalised in all the cases.
Madhu.T.K
From India, Kannur
Hi, Suhas For eligibility of Gratuity we will consider whether he completed the 5 years of service or not.
From India, Mumbai
From India, Mumbai
hi
regarding gratuity eligibility
In the past gratuity eligibility is to complete 5 yrs of service and if female and maternity benefits availed it does not affect the same procedure
In the recent amendment, 240 days to be completed employees are eligible for gratuity
gratuity formula is basic / 26 * 15 * no of years service
regards
From India, Chennai
regarding gratuity eligibility
In the past gratuity eligibility is to complete 5 yrs of service and if female and maternity benefits availed it does not affect the same procedure
In the recent amendment, 240 days to be completed employees are eligible for gratuity
gratuity formula is basic / 26 * 15 * no of years service
regards
From India, Chennai
Hi,
Since no one replied on my new thread, I am pasting the same here....if someone can please help.....
I would like to know if we have less than 10 employees, contract is continuous and renewed every four years and it is mentioned in contract that gratuity is payable, then is the organisation bound to pay gratuity or not?
Secondly, the organisation was under some consultancy and then after expiry of tender the same was taken over by another consultancy with same terms and conditions of the contract as per earlier consultancy agreement. But after the expiry of second consultany the third consultancy who has taken over is ready to pay gratuity only from the day they had taken over, which means the earlier years gratuity, the first and second consultancy has not paid and gets lapsed even if there was contract with the employees mentioning gratuity.
can we claim it back from the third consultancy through Indian law, since all the consultancy firm which had taken over are not bound by Indian law, they are foreign firms, but employees are Indians.
thanks and regards
jd
From India, Mumbai
Since no one replied on my new thread, I am pasting the same here....if someone can please help.....
I would like to know if we have less than 10 employees, contract is continuous and renewed every four years and it is mentioned in contract that gratuity is payable, then is the organisation bound to pay gratuity or not?
Secondly, the organisation was under some consultancy and then after expiry of tender the same was taken over by another consultancy with same terms and conditions of the contract as per earlier consultancy agreement. But after the expiry of second consultany the third consultancy who has taken over is ready to pay gratuity only from the day they had taken over, which means the earlier years gratuity, the first and second consultancy has not paid and gets lapsed even if there was contract with the employees mentioning gratuity.
can we claim it back from the third consultancy through Indian law, since all the consultancy firm which had taken over are not bound by Indian law, they are foreign firms, but employees are Indians.
thanks and regards
jd
From India, Mumbai
Hi, vijaylaxmi Please refer the Payment of gratuity act and read the eligibility for gratuity that garrulity formula is only for the calculation purpose.
From India, Mumbai
From India, Mumbai
First of all without knowing the nature of business the applicability of the Payment of Gratuity Act cannot be decided. If a factory, mine or plantation the Act will be applicable without reference to the number of workers working whereas if a shop or commercial establishment the Act will be applicable only it has at least 10 workers employed. It is also important that once the establishment had 10 workers but later on the number of workers reduced to less than 10, then also the applicability will be there.
Now coming to the applicability of the Act on you, it is to be seen who is your employer? It is not clear from the post the nature of “consultancy”. If it is like doing something for a principal employer and continuing the work as it is for years together but under different contractors, then the issue needs to be taken up seriously. There can be an arrangement in which a set of people will be engaged by a principal employer for one year and the same persons will continue after the expiry of the original contract for another year but under a different contractor. Please clarify what exactly is your arrangement
Madhu.T.K
From India, Kannur
Now coming to the applicability of the Act on you, it is to be seen who is your employer? It is not clear from the post the nature of “consultancy”. If it is like doing something for a principal employer and continuing the work as it is for years together but under different contractors, then the issue needs to be taken up seriously. There can be an arrangement in which a set of people will be engaged by a principal employer for one year and the same persons will continue after the expiry of the original contract for another year but under a different contractor. Please clarify what exactly is your arrangement
Madhu.T.K
From India, Kannur
Hi,
For all
There is nothing is mentioned in payment of gratuity act for 240 days calculation and all....please go through below
The Payment of Gratuity Act, 1972
Applicability:
1) To every factory and other establishment in which 10 or more persons
are employed.
2) Once this is applicable, later on even if employees are reduced to less
than, this Act remains applicable.
Main Compliance:
1) Duty of employer to give notice of application of the Act to controlling
authority.
2) Payment to Gratuity:
a) Eligibility: Continuous 5 years of service
b) In case of death of employee, payment has to be made to minor.
c) Amount of Gratuity:
Normal: Last drawn salary/26*15*no of year of service
Seasonal: Last drawn salary/26*7*no of year of service
Salary: Basic+ DA
d) Maximum amount: Rs.350000
e) Time limit: within 30 days of form due date
3) Duty of employer to determine the amount of gratuity and give notice in
writing to the person to whom the gratuity is payable and to the
controlling authority.
4) Duty of the employer to give notice of opening, change or closure of
establishment
5) Duty of the employer to obtain nominations from the employees.
Ex.
If the salary (Basic + DA) = 5,000
5000/26 (working days) x 15 (days service) x nos of year service completed
From India, Mumbai
For all
There is nothing is mentioned in payment of gratuity act for 240 days calculation and all....please go through below
The Payment of Gratuity Act, 1972
Applicability:
1) To every factory and other establishment in which 10 or more persons
are employed.
2) Once this is applicable, later on even if employees are reduced to less
than, this Act remains applicable.
Main Compliance:
1) Duty of employer to give notice of application of the Act to controlling
authority.
2) Payment to Gratuity:
a) Eligibility: Continuous 5 years of service
b) In case of death of employee, payment has to be made to minor.
c) Amount of Gratuity:
Normal: Last drawn salary/26*15*no of year of service
Seasonal: Last drawn salary/26*7*no of year of service
Salary: Basic+ DA
d) Maximum amount: Rs.350000
e) Time limit: within 30 days of form due date
3) Duty of employer to determine the amount of gratuity and give notice in
writing to the person to whom the gratuity is payable and to the
controlling authority.
4) Duty of the employer to give notice of opening, change or closure of
establishment
5) Duty of the employer to obtain nominations from the employees.
Ex.
If the salary (Basic + DA) = 5,000
5000/26 (working days) x 15 (days service) x nos of year service completed
From India, Mumbai
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf