Hello,
I need advice regarding payment of gratuity for the employees who were resigned from my company.
Case is as under.:
1. One of my employee resigned after completing service of 4 years 11 months with this company. Hence he worked with 4 years and 334 days with the company.
2. One of employee resigned after completing of service of 4 years and 218 days with the company.
As per my view gratuity is applicable if employee has completed 4 years and 240 days with the company as mentioned in Section 2 regrading continues service hence 2nd one is not eligible for gratuity while 1st one is eligible as he 5 years can be considering in his case.
I need your expert advice in this regard. Whether gratuity is payable to them as per gratuity act?
Thanking You,
Foramkuamr Patel
From India, Vadodara
I need advice regarding payment of gratuity for the employees who were resigned from my company.
Case is as under.:
1. One of my employee resigned after completing service of 4 years 11 months with this company. Hence he worked with 4 years and 334 days with the company.
2. One of employee resigned after completing of service of 4 years and 218 days with the company.
As per my view gratuity is applicable if employee has completed 4 years and 240 days with the company as mentioned in Section 2 regrading continues service hence 2nd one is not eligible for gratuity while 1st one is eligible as he 5 years can be considering in his case.
I need your expert advice in this regard. Whether gratuity is payable to them as per gratuity act?
Thanking You,
Foramkuamr Patel
From India, Vadodara
Dear Patel,
Your presumption that the employee who worked for 4 years and 11 months is eligible to get gratuity under the PG Act,1972 whereas the employee with less than 240 days of service in the fifth year not eligible is correct in view of the Madras High Court's judgment in Mettur Beardsel case.
From India, Salem
5967Your presumption that the employee who worked for 4 years and 11 months is eligible to get gratuity under the PG Act,1972 whereas the employee with less than 240 days of service in the fifth year not eligible is correct in view of the Madras High Court's judgment in Mettur Beardsel case.
From India, Salem
Dear Mr. Patel,
The act says one is eligible for gratuity on completetion of 5 years service. Till to-day there is nothing substantial change has made to act on this subject, except some decissions from different HC's. Those verdicts are only a directive for the case only. No where the HC's has directed the appropriate Govt to make an ammendment or publish Notification on condtions stated.
However, your establishment is free to consider on the stated ground. No one would prevent or raise objection except from your organsiation, if you pay Gratuity (employee who worked for 4 years and 11 months or 4 years and 334 days ).
From India, Mumbai
The act says one is eligible for gratuity on completetion of 5 years service. Till to-day there is nothing substantial change has made to act on this subject, except some decissions from different HC's. Those verdicts are only a directive for the case only. No where the HC's has directed the appropriate Govt to make an ammendment or publish Notification on condtions stated.
However, your establishment is free to consider on the stated ground. No one would prevent or raise objection except from your organsiation, if you pay Gratuity (employee who worked for 4 years and 11 months or 4 years and 334 days ).
From India, Mumbai
Mr. Patel,
Gratuity is as you rightly stated and our worth members also affirmed payable on completion of 4 years and 240 days minimum. This period includes sanctioned leaves, any break in service not attributable to any fault of the workman or any holidays. Mettur breadsell case is the best to refer when there is the question about the entitlement. I am attaching the judgment for your ease.
So yes in your case the person who has put in the services of 4 years and 11 months is entitled for gratuity and other one is not.
From India, New Delhi
Gratuity is as you rightly stated and our worth members also affirmed payable on completion of 4 years and 240 days minimum. This period includes sanctioned leaves, any break in service not attributable to any fault of the workman or any holidays. Mettur breadsell case is the best to refer when there is the question about the entitlement. I am attaching the judgment for your ease.
So yes in your case the person who has put in the services of 4 years and 11 months is entitled for gratuity and other one is not.
From India, New Delhi
Dear Patel,
Greetings for the day,
As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) i.e completion of 4 years+240 days in 5th year of service is required for the payment of gratuity .
Thanks & Regards,
from,
sumit kumar saxena
From India, Ghaziabad
Greetings for the day,
As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) i.e completion of 4 years+240 days in 5th year of service is required for the payment of gratuity .
Thanks & Regards,
from,
sumit kumar saxena
From India, Ghaziabad
Hi,
Greetings of the day,
I was working in a bank (for third party payroll) which works for 5 days a week, and resigned recently, I have completed more then 4 years and 190 days without any break in services, As per the Act I downloaded from Gov.in Which states that An employee who works for more then 190 days in his last year of services can be considered for Gratuity. Now my HR is denying the claim stating that Only person who works in a MINE is eligible for said act of 4 years and 190 days. and Banking field is not considered under the same. Kindly confirm whether I am eligible or not.
I need a little clarification on below if someone can help me out which is as below
Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1),
for any period of one year or six months, he shall be deemed to be in continuous service under the employer-
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case:
From India, Ahmedabad
Greetings of the day,
I was working in a bank (for third party payroll) which works for 5 days a week, and resigned recently, I have completed more then 4 years and 190 days without any break in services, As per the Act I downloaded from Gov.in Which states that An employee who works for more then 190 days in his last year of services can be considered for Gratuity. Now my HR is denying the claim stating that Only person who works in a MINE is eligible for said act of 4 years and 190 days. and Banking field is not considered under the same. Kindly confirm whether I am eligible or not.
I need a little clarification on below if someone can help me out which is as below
Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1),
for any period of one year or six months, he shall be deemed to be in continuous service under the employer-
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case:
From India, Ahmedabad
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc