Gratuity for 4 yrs 11 months, and 5 days - Any pointers to law books or legal docs supporting my case?

Hello, I have completed 4 years and 11 months and 5 days in my previous job. In all likelihood, I have completed 240 days in my 5th year. Am I eligible for gratuity? I contacted my ex-employer, and the finance team said they are evaluating the case. Please advise. Any pointers to law books or legal docs supporting my case are greatly appreciated.

Thank you

Hi,

Any employee who has completed 4 years and 8 months (or 4 years and 240 days in the 5th year) of service is eligible for gratuity as per the Payment of Gratuity Act, 1972.

An employee is eligible for gratuity only if he has 240 days of continuous service in each completed year for 5 years.

Please let me know if you need any further assistance.

As per the Gratuity Act, any employee who has not completed their five years of continuous service will not be eligible for gratuity, even if they have completed four years and eleven months. Therefore, Anu will not be eligible for gratuity.

Mr. Coolheadtamil is correct. You are required to complete 240 days in a year. Therefore, for the fifth year, if you have already completed your 240 days (though in 11 months), you will be eligible for gratuity.

Mayuri Manager - HR

Hello Anuaro,

Please find the attachment for your clarification.

Regards,
Rohan Bhatt.

I do agree with Rath Ratikanta. As per the Gratuity Act, any employee who has not completed their 5 years of continuous service will not be eligible for gratuity.

Thank you.

Hi,

It is clarified here that as per the Gratuity Act, any employee who has not completed his continuous 5 years of service in an establishment will not be eligible for receiving the gratuity amount, even if he has completed 4 years and 11 months of service. The 240-day clause is mentioned in the Act for the purpose of calculating Gratuity. That is, if the person is entitled to gratuity and in the sixth year he has completed 240 days of continuous service, then he will be entitled to the whole year's gratuity in the sixth year. To be entitled to the gratuity amount, one must complete 5 years of service in an establishment. Therefore, you are not eligible to receive the gratuity amount.

V.K. Gupta

Dear Friends,

The Madras High Court judgment has been regarded by HR professionals as the final word on the matter of gratuity payment before completing five years of continuous service. It has been interpreted as having legal binding nationwide. For the benefit of all, I believe it is necessary to clarify the situation.

The Madras High Court judgment holds legal binding only in the state of Tamil Nadu. In other states, it carries persuasive value but not legal binding.

There has been no decision from the Supreme Court on this issue. Until such a judgment is made by the highest court in the country, the provisions of the Gratuity Act will always take precedence. The Act specifies that gratuity eligibility is only after completing five years of continuous service. The calculation of gratuity should consider 240 days in each year.

The exception to the five-year service requirement is only in cases of death or disablement.

Regards,

Anil Kaushik

Chief Editor-Business Manager-HR magazine

B-138, Ambedkar Nagar, Alwar-301001 (Raj.) India

Email: bmalwar@yahoo.com

Mobile: 09829133699

For the payment of gratuity, one should complete a minimum of 5 years of service as per the Payment of Gratuity Act.

Regards,
Arjun Singh