Am I Eligible for Gratuity After Working 4 Years and 11 Months at My Job?

I joined the bank on 01-11-2006 and resigned on 30-07-2011. My last working day in the company was 30-09-2011. So, I worked for 4 years and 11 months. Will I get the gratuity amount? Please answer my query.

Yes, you are eligible.

Yes, you are eligible. If you have completed 240 days in the fifth year, you are eligible to receive it.

Regards,
Sebastian

Yes, you are eligible for the gratuity benefit from the company since you were working with the company for 4 years and 240 days, which is the minimum tenure criteria for an employee to be eligible for the gratuity claim.

Regards,
Neelam

I'm also in the same trouble. I have completed 183 days in the 5th year. I just wanted to confirm if by any chance or by any law enforcement, gratuity can be availed.

Regards

You are not eligible to receive gratuity under the Payment of Gratuity Act, 1972.

Regards.

Dear Vanshikajain12, you are not eligible for payment of gratuity as per the provisions of the Payment of Gratuity Act. There are different judgments stated by different courts, but it is very clear in the Act that if any employee's services are even one day short of completing 5 years of service, he/she will not be eligible for payment of gratuity.

Regards,
Dheeraj

180 days is enough if you work 6 days a week. Please confirm with the LIC member.

Regards,
Sebastian

180 days is enough if you have worked 6 days a week. Please confirm with LIC India.

Dear Sebastian, please elaborate on your quote. I am concerned about receiving gratuity from my ex-employer.

Regards,
Rakesh

Mr. vanshikajain12, sorry, you are not eligible for gratuity. I agree with dheepree. As per the Gratuity Act 1972, one must work for 240 working days every year and complete 5 years of full service. However, if an employee faces death or permanent disablement, different rules apply. Since you have only completed 4 years, 10 months, and 29 days, you are not eligible for gratuity.

Regards,
Guru.

You are correct that working 240 days in the fourth year is necessary, but now 270 days are required.

Thank you.

Regards,

If someone is terminated by the company, does the company have a liability to pay gratuity if the employee has completed 5+ years of employment?

Regards,
Rajesh

Gratuity Eligibility After 5 Years of Service

An employee who has completed 5 years of service is eligible for a gratuity payment, whether it is due to resignation or termination.

After an employee has completed 5 years of service, they are eligible for a gratuity payment, regardless of whether it is due to resignation or termination.

Section 4: Payment of Gratuity

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, or
- (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.

Provided further that in the case of the death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs is a minor, the share of such minor shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.

Explanation: For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

As per the Gratuity Rules, you are not eligible to receive the gratuity amount on completion of 4 years and 11 months. To become eligible for the gratuity amount, you have to complete a minimum of 5 years of service. Rounding off the months to the nearest year will be done once the employee is eligible for the gratuity amount. In other words, in your case, rounding off 11 months to 1 year to make it 5 years will not be done.

Regards,
Ajeet Kumar

Same is my understanding. Rounding off cannot be considered for eligibility criteria, which should be a complete service of 5 years. Thereon, to calculate the total number of service beyond 5 years, rounding off can be applied.

Regards,
Gigi Mathew

When I was working with a logistics company, we provided gratuity for a person who served only 4.7 years. Kindly check with the HR department, as I heard that we can avail gratuity once we have completed more than 4.6 years. Please correct me if I'm wrong.

The Act stipulates the minimum requisites. There is no governance for a maximum limit. Companies are welcome to pay even the tax amount on behalf of the employee in case of gratuity exceeding the ceiling.

Thank you.
Regards.

I appreciate your point of opinion. There are decisions given by the MAA High Court and the CCU High Court wherein it was stated that if someone has worked for 240 days in the 5th year, they are also eligible for gratuity. The MAA High Court decision is available on the internet; you can download it. I believe it's a 1999 decision. Kindly go through it and advise.

Since the PGA is a Central Act, the decision of the MAA High Court would apply to all of India, as far as I understand. Kindly clarify.

Kind Regards,
Rajeev Nangia

May I know if the probationary period (6 months) is also included in the eligible period of 5 years of service for gratuity?

Regards,
M Venkatesan

I have a query. When we say 240 days each year, is that on average? I mean, if a person has worked for 200 days in the 5th year but 280 days in the 4th year, can we take an average of the two to be 240? Or does a person need to complete 240 days separately in each year?

Thanks,

Peonka

Dear Rajeev, I have given my opinion on the following: "Hi Sebastinss, I am also in the same trouble... I had completed 183 days in the 5th year. I just wanted to confirm if by any chance or any law enforcement gratuity can be availed. Regards, I have never made any comments on 240 days working in the fifth year in this thread. The judgment of the Hon'ble Madras HC was reported as 1998 LLR 1072 (Mad H.C.) and I have already gone through it. In my opinion, the Controlling Authorities/Appellate Authorities under the PG Act are bound to consider this judgment for those under this particular High Court. Submitted as requested. Regards, R N Khola

Clarification on Gratuity Eligibility

Dear Mr. Khola, I appreciate your point of view. There are decisions given by MAA High Court and CCU High Court wherein it is stated that if someone has worked for 240 days in the 5th year, they are also eligible for gratuity. The MAA High Court decision is available on the internet, I believe it's from 1999. Kindly go through it and advise. PGA is a Central Act, so the decision of MAA High Court would apply to all India as far as I understand. Kindly clarify.

Kind Regards, Rajeev Nangia

Yes, you are eligible for gratuity because you have completed 4 years and 6 months in that company. You can claim the amount by referring to the Gratuity Act for the same.

As per the Gratuity Act, the minimum eligibility is 4 years and 240 days. The previous company is liable to pay the gratuity. It is the eligible person's right to claim it.

Regards,
Balamurugan.L

[QUOTE=vanshikajain12;1678154] I JOINED THE BANK ON 01-11-2006 AND RESIGNED ON 30-07-2011. MY LAST WORKING DAY IN THE COMPANY WAS 30-09-2011. I WORKED FOR 4 YEARS AND 11 MONTHS. WILL I BE ELIGIBLE FOR GRATUITY AMOUNT? PLEASE ANSWER MY QUERY.

Gratuity Eligibility Clarification

According to the Gratuity Act, you need to have completed 5 years to be eligible for gratuity. However, it is at the employer's discretion whether they choose to provide it or not since you have not completed the full 5 years.

Hope this helps clarify your query. Thank you.

Gratuity Eligibility After 5 Years of Service

An employee must complete a continuous service of 5 years. However, after the ruling of the Madras High Court, if there are 240 working days in the 5th year, the employee is still eligible for gratuity.

It is correct that you must have completed 4 years and 240 days to avail the benefit of Gratuity. Even being one day short will deprive you of availing this benefit.

Thank you,

Regards,
Arshad Barkati

I fully agree with Mr. Dheeraj that there are different judgments stated by different courts, but it is very clear in the Act that if any employee's services are even one day short of completing 5 years of service, he/she will not be eligible for payment of gratuity.

Regards,
Dinesh

Gratuity Eligibility Inquiry

If my service is completed for 10 years, and I have worked continuously for 240 days for five years, but in the sixth and seventh years, I did not complete 240 days each year, please confirm how many years will be considered to calculate the gratuity amount.

I joined a construction company on 02-04-2007 and resigned on 01-01-2012. My last working day in the company was 30-01-2012, which means I worked for 4 years and 9 months. Will I receive a gratuity amount? Please answer my query.

No, you must complete 5 years of service for eligibility for the payment of gratuity.

Regards,
Dinesh