Dear Seniors,
I had worked for a private company for 4 Years 9 Months and 16 Days.
When I asked my gratuity to HR, he said I am not eligible as I have to complete 4 yrs 11 months.
I heard that if any employee complete 4.8 yrs are eligible for gratuity.
can anyone help me on this and do I eligible for gratuity ? ..
Is there any govt.or labour notification for gratuity eligibility.
Thanks & Rgd's
Anand
From India, Bengaluru
I had worked for a private company for 4 Years 9 Months and 16 Days.
When I asked my gratuity to HR, he said I am not eligible as I have to complete 4 yrs 11 months.
I heard that if any employee complete 4.8 yrs are eligible for gratuity.
can anyone help me on this and do I eligible for gratuity ? ..
Is there any govt.or labour notification for gratuity eligibility.
Thanks & Rgd's
Anand
From India, Bengaluru
Dear Anand,
you are eligible for gratuity. please see the summary for more details
(According to the law, an organization has to pay gratuity to an employee who has served it continuously for at least 5 years. For each year of service, the organization has to pay an amount equaling 15 days of last drawn salary. Salary here means basic salary plus dearness allowance plus commission, if commission is a fixed percentage of sales. Moreover, if a person works for over 6 months in the last year of service, it will be considered as a complete year for gratuity calculation. For instance, if a person completes 4 years and 6 months of continuous service, gratuity paid will be for 5 years.)
From India, Mohali
7you are eligible for gratuity. please see the summary for more details
(According to the law, an organization has to pay gratuity to an employee who has served it continuously for at least 5 years. For each year of service, the organization has to pay an amount equaling 15 days of last drawn salary. Salary here means basic salary plus dearness allowance plus commission, if commission is a fixed percentage of sales. Moreover, if a person works for over 6 months in the last year of service, it will be considered as a complete year for gratuity calculation. For instance, if a person completes 4 years and 6 months of continuous service, gratuity paid will be for 5 years.)
From India, Mohali
Thank you pradeep. can you please send me any Govt. or Labour notification for 4.6 yrs above are eligible for gratuity. so that I can show it to my HR.
Also I would like to know who will decide the payment of gratuity ? company or any other?
Thanks & Rgd's
Anand
From India, Bengaluru
Also I would like to know who will decide the payment of gratuity ? company or any other?
Thanks & Rgd's
Anand
From India, Bengaluru
Rule says 5 years continuous service
5 years continuous service means 4 years 240 days of work in last year if office is open on Saturdays and 4 years 190 days if office is closed on both sat and Sunday.
If a workman has put in uninterrupted service for 4 years and 240 days, as per Gratuity law in India, he will be considered to have completed 5 years of continuous service and will be eligible for gratuity on termination of his service on account of superannuation, retirement, resignation, death or disability.
Continuous service for one year means:
uninterrupted service for at least 240 days in that year. In counting uninterrupted service, interruption of service due to sickness, accident, leave, absence from duty without leave (unless an order is passed treating the absence as a break in service), lay-off, lawful strike or lock-out, or cessation of work without any fault of the employee, are not to be deducted and shall be counted as part of uninterrupted service
So employee has to check out whether all these conditions are met in 5 year before deciding his entitlement for Gratuity.
From India, Pune
5 years continuous service means 4 years 240 days of work in last year if office is open on Saturdays and 4 years 190 days if office is closed on both sat and Sunday.
If a workman has put in uninterrupted service for 4 years and 240 days, as per Gratuity law in India, he will be considered to have completed 5 years of continuous service and will be eligible for gratuity on termination of his service on account of superannuation, retirement, resignation, death or disability.
Continuous service for one year means:
uninterrupted service for at least 240 days in that year. In counting uninterrupted service, interruption of service due to sickness, accident, leave, absence from duty without leave (unless an order is passed treating the absence as a break in service), lay-off, lawful strike or lock-out, or cessation of work without any fault of the employee, are not to be deducted and shall be counted as part of uninterrupted service
So employee has to check out whether all these conditions are met in 5 year before deciding his entitlement for Gratuity.
From India, Pune
There is a case law 1998 LLR 1072 MADRAS HIGH COURT W.P.2135 OF 1987 Decided on 12.6.1996 Mettur Beardsell Ltd.,Madras Vs Regional Labour Commissioner(Central) (Authority under Payment of Gratuity Act), Madras & Others.
A. PAYMENT OF GRATUITY ACT, 1972-Section 2(a), 2(b),2(c),2(e) and 2A- 'Continuous service' - Qualifying period of service by an employee -Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for one year as stipulated by section 2A of the Act.Thus an employee who has put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous service of five years - His claim for gratuity is tenable. Hence you are eligible for gratuity.
From India, Chennai
A. PAYMENT OF GRATUITY ACT, 1972-Section 2(a), 2(b),2(c),2(e) and 2A- 'Continuous service' - Qualifying period of service by an employee -Entitlement of Gratuity - An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for one year as stipulated by section 2A of the Act.Thus an employee who has put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continuous service of five years - His claim for gratuity is tenable. Hence you are eligible for gratuity.
From India, Chennai
Don't worry about gratuity, all you need to do is check how many leaves you have taken in total. And that should match 4 years 240 days if working for 6 days and should match 4 years 190 days if working for 5 days.
From India, Hyderabad
From India, Hyderabad
To clarify further it is enough that 4 years and 240 days of continuous service to claim gratuity. Not necessary one has to complete full 5 years of service.
From India, Chennai
From India, Chennai
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx