Swapnil Sheth 28 April 2023

Payment of gratuity

Hello,

I have recently accepted the position within my organization based out of Germany.

It is the same organization but different country. I have been currently with the organization since 4 years & 3 months.

My HR says, my gratuity amount would lapse because the time as per the law is 4 years 8 months.

But if I am in the same company & not quitting the company before 5 years should I be eligible for Gratuity payment ? Why is it lapsed ? Is there any judgement on similar case ? Please help.

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3 Replies

T. Kalaiselvan, Advocate (Advocate) 28 April 2023

It is not known what your company mentioned about gratuity.

An employee is eligible for gratuity payment after completing 5 years of continuous service with one employer.

if an employee worked for 4 years and 8 months, the duration is considered as 5 years of continues service and he is eligible for gratuity.

if the employee has worked for 4 years and 4 months, it is treated as less than 5 years and no gratuity will be payable to an employee.

Therefore you may clarify the details and return to this forum in case you are aggrieved with the decision of your employer, if no rules were followed properly, for more suggestions to solve the problem.

P. Venu (Advocate) 28 April 2023

Provisions of Payment of Gratuity Act applies to employment in our Country. The posting is silent as to whether the terms of your employment are governed by the law as in force in this country.

Please precise facts governing the terms of your employment.