My company was registered as a Pvt. Ltd. firm in 2008. One employee who joined in 2007 is now resigning in 2015. In between, she took a one-year leave. She is claiming her Gratuity. What I want to know is, should I consider the years of service as 7 or 6? (2007 to 2015 - 1) = 7 or 2008 (company registered) to 2015 - 1 = 6.
From India, Mumbai
Acknowledge(0)
Amend(0)

when she not served 240 days in a year, she is not eligible for gratuity and hence you can give gratuity for 7 years of service.
From India, New Delhi
Acknowledge(0)
Amend(0)

Ok, Thank you Jagat. What i wanted to know was, can we reduce mentioning the company registered year? she joined in 2007 and company was registered in 2008.
From India, Mumbai
Acknowledge(0)
Amend(0)
  • CA
    CiteHR.AI
    (Fact Checked)-Ok, duly noted. Thank you for your input on the issue. (1 Acknowledge point)
    0 0

  • no. whether a company is registered or not, do not deny the gratuity eligible as she joined in 2007
    From India, New Delhi
    Acknowledge(1)
    JE
    Amend(0)

    Hi, She is eligible to get gratuity for 7 years. With regards Mr.Thumbs Up
    From India, Chennai
    Acknowledge(1)
    JE
    Amend(0)

    Dear Jeena,

    If she has not worked for 240 days in a particular year, you need not consider that year for paying gratuity. Your calculations will be for 6 years. The date of joining will be considered, not the co-registration, for calculating gratuity.

    Regards

    From India, Hyderabad
    Acknowledge(1)
    JE
    Amend(0)

    Hi Acts Says the below Points,

    Nomination (Sec 6) Each employee who has completed one year of service is required to make a nomination for the purposes of gratuity in the case of his death. There can be more than one nominee (Form F). Nominees may be changed at any time by the employee by giving written notice to the employer (Form H). If no nomination has been made, it shall be paid to the legal heirs of the deceased employee. If the heirs are minor, the share of such a minor shall be deposited by the controlling authority with a bank until he attains majority.

    If no nomination is named, you may ask the nominee to prove they are legal heirs of the deceased person by providing certificates like a family ration card, marriage invitation, etc.

    From India, Chennai
    Acknowledge(0)
    Amend(0)

    Dear Praveen ji, Thanks so much!! Can you please tell me what is: 1.Claimant Statement Part-1 2.Employer Statement-Part-2 in context of gratuity payment?Thankss
    From India, Bhilai
    Acknowledge(0)
    Amend(0)

    The constitution of the establishment and its subsequent changes, whether in its form or ownership, have no relevance to the payment of gratuity. What is relevant is the continuity of service of the employee in the establishment, completion of qualifying service of not less than 5 years of continuous service on normal termination of employment, and rendering of continuous service in every year.
    From India, Salem
    Acknowledge(0)
    Amend(0)
  • CA
    CiteHR.AI
    (Fact Checked)-The user reply is correct. The payment of gratuity is based on the continuity of service, not on changes in the establishment's constitution or ownership. Qualifying service is counted based on the actual years of service rendered by the employee. (1 Acknowledge point)
    0 0

  • Dear Sir/Mam, I want to know that " suppose co. is registered under shop act" then employee is eligible for gratuity or not who is working since 2010 to till 2015 august.
    From India, Gurgaon
    Acknowledge(0)
    Amend(0)
  • CA
    CiteHR.AI
    (Fact Checked)-The employee is eligible for gratuity if the company is covered under the Payment of Gratuity Act, regardless of shop act registration. The eligibility is based on continuous service of 5 years. (1 Acknowledge point)
    0 0

  • Hello Jeena Elsa,

    When did the employee take a 1-year leave? If it happens to be somewhere in between, thereby not completing 5 continuous years of service, she wouldn't be eligible for Gratuity. The key word will be continuous, as other members mentioned.

    Regards,
    TS

    From India, Hyderabad
    Acknowledge(0)
    Amend(0)

    Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







    Contact Us Privacy Policy Disclaimer Terms Of Service

    All rights reserved @ 2025 CiteHR ®

    All Copyright And Trademarks in Posts Held By Respective Owners.