Gratuity eligibility

The primary condition to receive gratuity is that an employee should be  in service continuously  for five (5) years. This condition is relaxed in the case of termination due todeath or disablement. In these cases, no minimum period of service is required.

Sir,

Pl. find the article posted on Lawyers Club for your consideration

Originally Posted by yedhulaprakash  Section 4 of the Payment of Gratuity Act, 1972 provides that an employee will entitled to gratuity on completion of countinuous service of 5 years and while clarifying the 5 years complete service, Andhra Pradesh Hight Court had held that the minimum period for becoming eligible for payment of gratuity should not be less than 5 years since it should be complete 5 year service. It was further clarified that the words or part in excess of six months' are only meant for the purposes of computation of gratuity for the subsequent year or years to first complete 5 years. It was also held that if an employee has worked for 4 years 11 months and 10 days, he will not be eligible for gratuity for want of completion of 5 years. Further in a subsquent case, MADRAS HIGH COURT while relying upon the clarification by the SUPREME COURT pertaining to 240 working days in one year will be deemed to be continuous serice of one year meaning thereby that there should not be complete 12 calender months' service. MADRAS HIGH COURT has further held that an employee, who has put in service of 4 Years 10 Months and 18 Days in the 5 years, will be entitled to gratuity. Case Ref. : Mettur Beardsell Ltd., Madras v. Regional Lab. Commissioner (Appellate Authority under Payment of Gratuity Act), Madras etc., 1998 (3) LLN 414. Attribution: https://www.citehr.com/104526-sc-ruling-gratuity-act.html#ixzz22gpDKyJe

Sushil

Kindly go thru the act and very informative threads intiated by employees. The HC and SC judgements are attached in the threads.

Section: 2A
Continuous service.

For the purposes of this Act, -

(a) 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;

(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the 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;

Section: 2
Definitions.

[2] [(c) "continuous service" means continuous service as defined in section 2A;]

It is felt that you have worked for 10 months and 9 dyas thus above 240 days.

Refer to the date of reference as cited in the act and calculate.

At the following link:

https://www.lawyersclubindia.com/forum/Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp#.UCP4NSIWrts

At the following link:

https://www.lawyersclubindia.com/forum/Gratuity-and-compensation-63698.asp#.UDIj9yIWrts