Hello everyone,
I have completed 4 years and 7 months of service with one of the IT companies. Am I eligible for gratuity? Details are:
- DOJ: 1st July, 2008
- Last date: Jan 31st, 2013
- Notice Period was from Dec 31 to Jan 31.
Am I eligible for gratuity? Any help would be appreciated.
Thanks in advance.
Regards,
Ashima
From India, Bangalore
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I have completed 4 years and 7 months of service with one of the IT companies. Am I eligible for gratuity? Details are:
- DOJ: 1st July, 2008
- Last date: Jan 31st, 2013
- Notice Period was from Dec 31 to Jan 31.
Am I eligible for gratuity? Any help would be appreciated.
Thanks in advance.
Regards,
Ashima
From India, Bangalore
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Dear Ashima, It depends on the sate where you are. The rules change from state to state. Please mention the state.
From India, Hyderabad
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70From India, Hyderabad
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Thank you, Bhandhavi for replying back. I was working in Bangalore, i.e., Karnataka. Any help/guidance would be appreciated. My office people said only when I complete 4 years and 8 months, I would become eligible.
Regards,
Ashima
From India, Bangalore
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Regards,
Ashima
From India, Bangalore
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Hi, If you have completed 4.5 years and above you are eligibile for gratuity . after 4.5 years the remaining period is to be rounded off for calculation . Regards Rajeev Dixit
From India, Bangalore
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From India, Bangalore
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Hi Rajeev, Thanks for the update! Is it possible to send some supporting document for the same? I can show it to my HR and request for clarification. Regards, Ashima
From India, Bangalore
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From India, Bangalore
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Dear Ashima,
The Act states that a fraction of a half day should be considered as a full day, and less should be omitted. If you have completed 4 years and 6 months, it means you have completed a fraction of a half year, so it will be treated as a full year. This means 4.6 equals 5 years.
Suppose you have completed 4 years and 3 months, then you have not completed a fraction of a year, which means it's less than a fraction of half, so it should be omitted. This means 4.3 equals 4 years.
Therefore, you are eligible for gratuity.
Arun J.
From India, Hyderabad
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The Act states that a fraction of a half day should be considered as a full day, and less should be omitted. If you have completed 4 years and 6 months, it means you have completed a fraction of a half year, so it will be treated as a full year. This means 4.6 equals 5 years.
Suppose you have completed 4 years and 3 months, then you have not completed a fraction of a year, which means it's less than a fraction of half, so it should be omitted. This means 4.3 equals 4 years.
Therefore, you are eligible for gratuity.
Arun J.
From India, Hyderabad
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Hi Arunji, Thanks for the update. My years come out to be 4.58. Still I believe I would be eligible. Any supporting document would help a lot. Regards, Ashima
From India, Bangalore
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From India, Bangalore
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Hi Pls note if your organisation is 5 days working then gratuity is applicable on continues service of 4 years and 190 days. Others its 4 years and 240 days
From India, Lucknow
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From India, Lucknow
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Hi,
Does it apply in Noida as well? I have worked from 1st June 2007 to 11th January 2012, and my company was a 5-day working organization. Am I also eligible for the gratuity? However, my company policy stated it for 5 years.
Hardeep Kaur
From United States
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Does it apply in Noida as well? I have worked from 1st June 2007 to 11th January 2012, and my company was a 5-day working organization. Am I also eligible for the gratuity? However, my company policy stated it for 5 years.
Hardeep Kaur
From United States
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Yes Pls go through the act.and check the Sec-2A (2) where it mentioned.......................................................
From India, Lucknow
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From India, Lucknow
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5 years needed for graduity making near 5 by rounding will not help so i understand one should not post according to their own thinking dr dave
From India, Rajkot
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From India, Rajkot
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In my previous post act was also attached, pls go through the act and post. i’m not thinking thats why attached the act.
From India, Lucknow
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From India, Lucknow
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well i also read the act so it is clearly shows service should be more than 5 years then rounding of 6 month or more applies.Am i correct?
From India, Rajkot
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From India, Rajkot
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For eligibility, one should have completed 5 years fully. Fraction of 6 months & above shall be rounded off only after your eligibility of 5 years for calculation of gratuity purpose
From India, Delhi
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From India, Delhi
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You are not eligible for Gratuity since you have not worked for 240 days in the 5th year. The rounding off of 6 months or more of service to one year is not for considering the eligibility of Gratuity, i.e., 5 years of service, but for the computation of the number of years of service for payment of Gratuity to eligible persons.
Varghese Mathew
996126696
From India, Thiruvananthapuram
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Varghese Mathew
996126696
From India, Thiruvananthapuram
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Please refer to Section 4 of the Gratuity Act. You are not entitled to gratuity as you have not completed the required minimum service of 5 years. Six months rounding to one year is counted only after you complete a minimum of 5 years of initial service.
From India, Nizamabad
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From India, Nizamabad
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You are required to render 240 days of service for five continuous years. It's just obvious that within seven months of the 5th year, you cannot complete 240 days. Thus, you are not entitled. For the sake of calculation, more than six months means another complete year but not entitlement to Gratuity.
From India, Howrah
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From India, Howrah
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Thank you, everybody.
Ordysen Sir,
My company operates on a 5-day working week. In this scenario, wouldn't I become eligible after completing 190 days? Considering 7 months as 7 x 30 = 210 days.
Kindly clarify this point.
Thanks in advance.
From India, Bangalore
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Ordysen Sir,
My company operates on a 5-day working week. In this scenario, wouldn't I become eligible after completing 190 days? Considering 7 months as 7 x 30 = 210 days.
Kindly clarify this point.
Thanks in advance.
From India, Bangalore
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Dear Ms. Ashima,
You are eligible for gratuity. As per the aforementioned dates, your service period is 4 years and 7 months. According to Gratuity rules, a day more than 6 months will be treated as one year. Therefore, your service period, considering gratuity rules, will be 5 years. Hence, you are entitled to Gratuity.
Regards,
S.N. Raju U.
From India, Hyderabad
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You are eligible for gratuity. As per the aforementioned dates, your service period is 4 years and 7 months. According to Gratuity rules, a day more than 6 months will be treated as one year. Therefore, your service period, considering gratuity rules, will be 5 years. Hence, you are entitled to Gratuity.
Regards,
S.N. Raju U.
From India, Hyderabad
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Dear Ashima please read the attachment given by Madras HC judge where it reveals the applicability of gratuity
From India, Bangalore
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From India, Bangalore
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Hi Ms. Ashmi,
I apologize for my previous post as I did not review your question thoroughly. Based on the mentioned dates, your service period is 4 years and 7 months. To be eligible for gratuity, you need to have served for at least 8 months, which equates to 240 days in the 5th year. Unfortunately, you have only served 210 days (7 months x 30 days). Therefore, you are not eligible for gratuity.
I have attached a copy of the court judgment regarding the number of days required to be served in the 5th year for your reference.
Regards,
S.N. Raju U.
From India, Hyderabad
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I apologize for my previous post as I did not review your question thoroughly. Based on the mentioned dates, your service period is 4 years and 7 months. To be eligible for gratuity, you need to have served for at least 8 months, which equates to 240 days in the 5th year. Unfortunately, you have only served 210 days (7 months x 30 days). Therefore, you are not eligible for gratuity.
I have attached a copy of the court judgment regarding the number of days required to be served in the 5th year for your reference.
Regards,
S.N. Raju U.
From India, Hyderabad
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Section: 2A
Continuous service.
For the purposes of this Act:
(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 a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment), layoff, strike or a lockout, 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 this Act.
(2) 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 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;
For the said period of six months, if the employee during the period of six 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) 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 of 1947), or under any other law applicable 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 an 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.
(3) 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 percent of the number of days on which the establishment was in operation during such period.
Regards,
Tushar
From Germany, Essen
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Continuous service.
For the purposes of this Act:
(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 a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment), layoff, strike or a lockout, 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 this Act.
(2) 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 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;
For the said period of six months, if the employee during the period of six 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) 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 of 1947), or under any other law applicable 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 an 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.
(3) 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 percent of the number of days on which the establishment was in operation during such period.
Regards,
Tushar
From Germany, Essen
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Dear Ashima,
You have to complete 4 years and 240 days for gratuity entitlement. Fraction to round off is applicable after 5 years. Suppose 5 years, 5 months, and 29 days will be considered as 5 years, and 5 years, 5 months, 30 days as 6 years.
Thanks,
M.S. Rana
From India, Ludhiana
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You have to complete 4 years and 240 days for gratuity entitlement. Fraction to round off is applicable after 5 years. Suppose 5 years, 5 months, and 29 days will be considered as 5 years, and 5 years, 5 months, 30 days as 6 years.
Thanks,
M.S. Rana
From India, Ludhiana
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Service for 240days in a year is mandatory as far as entitlement is concerned as you are not employed in seasonal establishment.
From India, Howrah
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From India, Howrah
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Ashima,
From your statement, you had worked for 4 years and 7 months, and your claim is for Gratuity. In one case, the judge has taken 240 days as the criteria in the fifth year, that is 80 percent attendance for 300 days, leaving 52 weekly holidays, festivals, and national holidays. You should have waited for a month, but you can knock on the door of the controlling authority. It is a cat on the wall, may favor you or not.
From India, Pondicherry
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From your statement, you had worked for 4 years and 7 months, and your claim is for Gratuity. In one case, the judge has taken 240 days as the criteria in the fifth year, that is 80 percent attendance for 300 days, leaving 52 weekly holidays, festivals, and national holidays. You should have waited for a month, but you can knock on the door of the controlling authority. It is a cat on the wall, may favor you or not.
From India, Pondicherry
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Your are eligible for the Gratuity. Madras high court in THE MANAGEMENT OF SALEM METTUR case decided somewhere in 1995 had delivered a judgement.
From India, Tiruchchirappalli
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From India, Tiruchchirappalli
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Dear Rajeev,
I have a question: Can any employee avail gratuity while on the job? Is it necessary to resign and then claim for gratuity? One of my friends has completed 5 years in Telecom in Delhi. Can she claim gratuity as she is still working with the company?
Please guide and suggest.
Regards,
Sima
From India, Raniganj
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I have a question: Can any employee avail gratuity while on the job? Is it necessary to resign and then claim for gratuity? One of my friends has completed 5 years in Telecom in Delhi. Can she claim gratuity as she is still working with the company?
Please guide and suggest.
Regards,
Sima
From India, Raniganj
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Dear ashima - if you have completed 1701 days of active service then your are eligible for claiming Gratuity as per the provisions of the Act. Thanks Maj Nirmal sharma
From India, New Delhi
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From India, New Delhi
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The family of an employee who died after completion of one year of service is eligible for gratuity. The decision of a High Court (HC) is applicable only in its jurisdiction unless the verdict is on a constitutional validity of a central order or law. In the absence of a contrary decision of its own HC on the same subject, the decision of another HC will have only a persuasive effect. In the case of gratuity, the Madras HC has correctly interpreted Section 2A of the Payment of Gratuity (POG) Act, stating that an employee with four years and 240 days of working is eligible for gratuity even without relying on the Madras HC order.
Varghese Mathew
Baseindia Business Solutions, TVPM
9961266966
From India, Thiruvananthapuram
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Varghese Mathew
Baseindia Business Solutions, TVPM
9961266966
From India, Thiruvananthapuram
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Dear Ashima,
Sorry, you are not entitled to gratuity as you have not completed the minimum qualifying period of service of 5 years as per Section 4(1) of the Payment of Gratuity Act, 1972. One should not get confused by reading together the 'continuous service' contemplated under Section 2A of the Act with Section 4, as the latter is only for the purpose of arriving at the minimum number of days of service rendered in a particular stretch of period exclusive of certain periods of absence.
From India, Salem
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Sorry, you are not entitled to gratuity as you have not completed the minimum qualifying period of service of 5 years as per Section 4(1) of the Payment of Gratuity Act, 1972. One should not get confused by reading together the 'continuous service' contemplated under Section 2A of the Act with Section 4, as the latter is only for the purpose of arriving at the minimum number of days of service rendered in a particular stretch of period exclusive of certain periods of absence.
From India, Salem
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respected Umakanthan your opinion is right sir. it is very well explained in detail about required for gratuaity
From India, Rajkot
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From India, Rajkot
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Simple rule - 1701 days of continous service irrespective of any state.If you have completed 1701 days you are eligible.
From India, New Delhi
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From India, New Delhi
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We are a small export house manufacturing Leather Handbags and Artificial Jewellery in New Delhi. Currently, we do not have many orders, so we are planning to lay off certain employees. My queries are:
1. If we lay off employees, do we have to pay both Service Compensation and Gratuity if the employee has been continuously employed for 5 years or more?
2. If any employee is employed for 4 years and 4 months, what do we have to pay them: Service Compensation or Gratuity or both?
3. If any employee is employed for less than a year, do we have to pay Service Compensation?
4. Please, can we have a service compensation calculation, or do we have to follow the same calculation as Gratuity?
5. Can we have documents supporting rules, laws, and orders passed to support the decision?
Thanks.
Attribution: https://www.citehr.com/312022-servic...#ixzz3Etfdebew
From India, New Delhi
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1. If we lay off employees, do we have to pay both Service Compensation and Gratuity if the employee has been continuously employed for 5 years or more?
2. If any employee is employed for 4 years and 4 months, what do we have to pay them: Service Compensation or Gratuity or both?
3. If any employee is employed for less than a year, do we have to pay Service Compensation?
4. Please, can we have a service compensation calculation, or do we have to follow the same calculation as Gratuity?
5. Can we have documents supporting rules, laws, and orders passed to support the decision?
Thanks.
Attribution: https://www.citehr.com/312022-servic...#ixzz3Etfdebew
From India, New Delhi
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx