Clarity between gratuity eligibility service (5 or 4.8 yrs)?

Dear Isaac Sir & All

Request you for the clarification for my below query:

In one of the major IT Org, I worked for 4 Years 5 Months 23 Days. This was my first Company, so at the time of Resignation I didn't aware of the terms & conditions of Gratuity, even our HR People didn't say anything about it. Due to no awareness on this component I didn't explore about Gratuity at that time.

Later I heard that if we work for 4.6 years, we are eligible for the Gratuity. So, I requested our Employer and they said that I'm not eligible. Also they added that for the Org(which workds 5 days a week) we have to serve at least 190 days in the 5th year to get the eligibility for the Gratuity. So, our Employer not agreed to pay the Gratuity.

I read the below article in the Gratuity Rules, i.e.

2.(b).for the said period of six months, if the employee during the period of six calender months preceding the dae with reference to which the calculation isto be made, has actually worked under the employer for not less than-
(i). ninety-five days, in the case of any 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.

So, I'm still confusing whether I'm eligible or not.for the Gratuity.

Kindly clarify me and do the needful. Please help.

Thanks a lot in advance!

@ NJR,

Sec:4(5); Employer can pay by its sweet will.

@NJR,

You have posted that:

"So, I requested our Employer and they said that I'm not eligible. Also they added that for the Org(which workds 5 days a week) we have to serve at least 190 days in the 5th year to get the eligibility for the Gratuity."

Is it stated in writing?

Post your contentions to employer and you are likely to get a reply.

Dear Kumar Doab

Thank you very much for your response!

That means, I do not have the eligibility to claim Gratuity,correct? Then, can you give me the clarification on 2(b). (i) and (ii) under the Six Months criteria in my above comment?

2.(b).for the said period of six months, if the employee during the period of six calender months preceding the dae with reference to which the calculation isto be made, has actually worked under the employer for not less than-

(i). ninety-five days, in the case of any 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

Thanks in advance for your great support!

This would help me share and communicate the reference with all in need, where we have confusion among 5 years and 4 years 240 days. We need to share the reference of this law, with the companies where the gratuity is still being paid after completion of continuous service of 5 years.

thanks for this information. this give me nice information.

@ Sagar Darji,

You are welcome.

Share with as many employee's, community of employe's, employee's unions, Trade unions as much possible.

Dear Kumar

Thanks a ton for your concern!

I got the above statement from the attached document here. Tech Mahindra folks also said we have to serve 4 Years 190 Days to be eligible. Your statement regarding section 4(5) is also correct, but they are not talking anything about this section.

I requested them for the below clarification, but not giving any clarification for the below:

@NJR,

You have worked fro 4Y5M23D

You have not worked for 190days in 5th year. ( seemingly short by 17 days…………………and lower by few days if leap years are counted).

The establishment has duly explained that it could have paid Gratuity to you, had you worked for 190days in 5th year.

The 190days include all off days/approved leave etc etc and 4Y include probation period etc etc 

You have the option to escalate to good offices of appointing Authority,MD,CEO,Chairman and achievements etc etc

By their sweet will they may pay and they can as per Sec: 4(5) as already posted.

HR personnel do not seem to have any discretion to pay in such case like yours.

28768&offset=27

Your version applies after completion of 5years.

If you are not satisfied you may discuss in person with a very able counsel at your location of unshakable repute and integrity, specializing in Labor/service matters.

Otherwise online portals are not substitute to face to face discussions in person with counsel based on examination of docs and inputs.

Thereafter pls come back to share the opinion of your counsel for the benefit of all readers.

Hi Issac, 

I have sent Form I through registered post to my previous organisation but they have denied clearly on mail to pay gratuity. I have worked with them for 4 years 290 days (six days working). Could you please advise me the next step to go forward. 

Hi Issac, 

I have sent Form I through registered post to my previous organisation but they have denied clearly on mail to pay gratuity. I have worked with them for 4 years 290 days (six days working). Could you please advise me the next step to go forward. 

Discuss with elders of the family, competent and experienced well wishers, retired employees, sesoned employee's/trade union leaders, a very able local senior counsel specializing in labor/service matters for a considered opinion, guidance and to proceed further.

You may have to aproach Controlling Authority of Gratuity.