Gratuity Before 5 Years Of Completion

Yes, you are eligible for Gratuity. Pls. read the Judgment of Madaras High Court mentioned below :-
1998 LLR 1072
MADRAS mGa COURT
Hon~ble Mr. S.M. Abdul Wahab~ J. W.P. No. 21350f1987 Decided on 12.6.1996


1
I MetturBeardseU Ltd. (represented by Its Personnel Manager), Madras
vs.
Regional Labour Commissioner (Central)
:0 (Authority under Payment of Gratuity Act).
1. Madras & Others




PAYMENT OF GRATUITY ACT~ 1972-
Sections 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 servicefor 'one year as stipulated by section 2A
of the Act -Thus an employee who has P.ut in service for 10 months and 18
days for the fifth year subsequent to first 4 years should be deemed to have
completed continuous s6rvice of five years -His claim for gratuity is tenable.

Dear Manivel;
For your quirry the answer is 'NO'. Even if you work for 4 years 11 months 10 days also you will not get gratuity.

Dear Bala
What about the Madras High Court's Judgement which Rajiv has referred? Have you checked that decision?

I am agree with Mr.Rajiv
MADRAS HIGH COURT JUDGMENT On Payment of Gratuity Act ,1972 ......
Sections 2 (A ) –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 be section 2A of the Act –Thus an employee who has put in service for 10 months and 18 days for the fifth years subsequent to first 4 years should be deemed to have completed continuous service of five years .His claim for gratuity is tenable.
If you are in this Judgment as per my knowledge you are eligible for gratuity .
Regards
Krishna naik

Dear Manivel Natarajan,
Rajiv is right. According to factory Act, an employee is eligible for grattuity, if he/she completed 4 years and 240 working days. if you completed, you are legally eligible and can go in labour court if they deny to give u ur gratuity amount.
All d best
Regards,
Salman

Good Question.
The employees dependent are eligible to get gratuity amount in case of any death occurs to an employee. For this reason we should collect Form F (Nomination) under Payment of Gratuity Act.

Dear All,
As concern with gratuity
1. Employer will calculated employee gratuity under his CTC and if employer issue this type of letter to employee, then defenately employee will get gratuity and there is no matter of service period.
2. Employer will not calculated his gratuity under his CTC, then defenately service period is major part for calculation of gratuity.

Dear All,
The eligibility for Gratuty is 4 years and 240 working days subject to following conditions:
1. Sundays, Public holidays, CL & SL will not be considered for calculating 240 working days.
2. Any Earned Leave enjoyed, maternity leave and days of Lay-Off (If any) will also be considered while calculating 240 working days.
Regards,
Manoj Thakur

In case of death, condition of 5 years is not applicable. If the employee dies before completion of 5 years, his nominees can get gratuity amount.

MEANING OF CONTINUOUS SERVICE UNDER THE ACT

The term 'continuous service' has been controversial ever since the Payment of Gratuity Act came into force in 1972. In one case, the Supreme Court has also interpreted the term which has led to the amendment of the definition by the Amended Act 25 of 1984 whereby a separate section 2-A defining continuous service was added. Again by an Amending Act 22 of 1987, the amendment was made in the definition. In order to determine as to what continu¬ous service means it is imperative to reproduce section 2-A defining continuous service which reads:

(1) "An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), layoff, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of the Act;

(2) Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (i) 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 employer during the period of twelve calendar months preceding the date with reference to which calcula¬tion 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 an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case.

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety five 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) one hundred and twenty days, in any other case.

Explanation: For the purpose of clause (2) the number of days on which an employee has actually worked under an employer shall include the days on which-

(i) He has been laid off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 ofl947) or under any other law applic¬able to the establishment;

(ii) He has been on leave with full wages, earned in the previous year.

(iii) He has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and

(iv) In the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks).

Where 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 for such period if he has actually worked for not less than seventy five per cent of the number of days on which the establishment was in operation during such period.

Source :The Payment Of Gratuity Act, 1972: Expects clarifications with Case Laws reference

KVJ Raghunath

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