Computation Of Gratuity - Pdf Download

Dear seniors,

I need clarification on gratuity for this case, employee has joined the company on 1st of October 2008 and he resigned & company relieved him from the duties on 31 August 2013. The Employees worked in the organisation 4 Years 11 Months (Continued Service).

Company head office located at Mumbai. But they established their factory in Tamilnadu. Factory is registered under the factories act in Tamilnadu.

Questions:

1. Either the employees eligible for gratuity (or) not???

2. Company has to follow the Tamilnadu gratuity rules (or) not?

3. As per the gratuity act, we have to consider as continued service if employee worked 240 day in the respective year. So that why can’t we consider as continued service in the fifth year if employee worked 240 days???

Now the company says as per the central gratuity rules, employee not completed Years of service, so that he can’t deemed gratuity as per the rules.

Note: judgment has given by the Madras High Court: Mettur Beardsell Ltd Vs Regional Labour Commissioner, Madras High Court.1998, as you aware.

Kindly provide recent judgment on this by any courts.

Regards

MAS-Hr

DEAR MR. MAS HR
ACCORDING TO GRATUITY ACT GRATUITY IS PAYABLE TO ANY EMPLOYEE AFTER CONTINUOUS FIVE YEAR SERVICE SO ACCORDING TO ACT CANDIDATE IS NOT ELIGIBLE FOR GRATUITY.
BUT IF WE CONSIDER MADRAS HIGH COURT JUDGEMENT THEN HE IS ELIGIBLE FOR GRATUITY BUT THIS IS A DEBATE BETWEEN COURT AND ACT ACCORDING TO EXPERTS

Dear MAH-HR,
Your factory comes in tamilnadu so all the rules and regulations will be applicable as per state government not as per central govt.so he will not be eligible to pay gratuity as per act. if he had completed 5.5 years then he were eligible for the gratuity of total 6 years..
Regards,
Ravindra Kumar Gupta
Asst. HR Manager
09826910595

Dear Ravindra Kumar,
Thanks for your reply, Madras high court has given judgment for gratuity as 4 Yrs 240 days eligible for gratuity. Attached notification for your reference.
Thanks.

Dear Seniors
I think a person complited 240 days in a year so his continous sevice is for one year that is clear in the act.
So in 5th year a person complited 240 days , he is liable for gartiuity.
Thanks
Amar Singh

Dear Friend,
he completed 4 yrs 11 m continuous service. Since his service is more than 4 yrs 6 months his period should be considered as 5 yrs and gratuity must be given to him.

He will be eligible for gratuity in this case as per Madras high court judgement. I also found a nice article on various other employee benefits in India - Employee Benefits by Companies in India -InvestmentYogi.

The employee has joined the factory or its Head Office, if the employee is working with the factory in Tamilnadu, he/she is eligible for gratuity. Kindly consult a lawyer who will help you in this regard.

Dear All,
Can anyone please provide me the copy of Act, where it is clearly mention that on completion of 4 years and 240 days, employee is eligible to claim Gratuity.
Still this point is not clear as in absence of proper documentation employers are not ready to pay it until and unless employee has completed 5 years.
Thanks
Deepa