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Gratuity Act - Is he eligible for gratuity if he leaves before completing 5 years? - CiteHR

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Gyandeep Chauhan
1

One of my friend is working in an organization from last 4+ years, he will complete his 5 years in April'2019. He is planning to leave the job before April'2019.
Is he eligible for gratuity, if yes can anyone suggest his gratuity amount.

From India, undefined
Rahul Chhabra
152

Dear gyandeep, One needs to serve a minimum of 5 years continuously in order to be eligible for gratuity. Regards Rahul
From India, Delhi
s.raghuram
12

If I am not wrong, if the employee puts 4 years 10 months, he/she is eligible for gratuity. Raghuram
From India, Bangalore
Shailesh Parikh_HR Pro
300

Dear Gyandeep
The gratuity act prescribes payment of gratuity upon completion of 5 years of continuous service. Based on judgement of Madras High Court some company has adapted practice of giving gratuity benefit even upon completion of 4.6 yrs. Check the practice with the said company.
Shailesh Parikh
99 98 97 10 65
Vadodara

From India, Mumbai
Rahul Chhabra
152

Section 4 of Payment of Gratuity act mandates completion of 5 years of service to be eligible for gratuity. In Mettur Beardsell case, gratuity was awarded after completion of 4 years and 240 days by Madras High Court. So this may apply to the state of TN; however a similar appeal was later quashed by Lucknow court stating that the act mandates completion of 5 years of continuous service.
Unless you are in the state of TN or your company policy/appointment letter states completion of 4 years and 240 days for gratuity eligibility; you are not eligible for gratuity before completion of 5 continuous years of service,
Regards
Rahul

From India, Delhi
Aks17
116

Hi
If your friend is very particular about getting the gratuity amount ask him/her to complete the 5 year tenure in the company to rule out any issue of not being paid the said amount. Any thing less than that might lead to issues wherein depending on the relationship and the company policies the employee may or may not get it. Going legal may not be a good option unless one is ready to spend time and pursue the issue.
Thanks and Regards

From India, Hyderabad
Aks17
116

Hi
Please go through the Payment of Gratuity Act specifically Section 4 which is as under[though not in full]
4. Payment of Gratuity.- (1) Gratuity shall be payable to an employee on
the termination of his employment after he has rendered continuous service for
not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation,
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be
necessary where the termination of the employment of any employee is due to
death or disablement.
So long as the above is fulfilled there should not be any issues though an employee leaving in the fifth year working for more than 8 months has been a subject of debate with some taking 240 working days as the criteria.
Hope this answers the person who had questioned my earlier response.
Thanks and Regards

From India, Hyderabad
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