Eligibilty for gratuity
Ash
(Querist) 05 February 2013
This query is : Resolved
Hello everyone,
I have completed 4years and 7months of service with one of the IT companies in Bangalore. The company works for 5days a week.
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, 2013
My ex employer says that it should have been 4years and 8months for me to be eligible. So far whatever I have read, there are two numbers doing the rounds: 240 and 190 days in 5th year. Any clarification/guidance in this regards will be highly appreciated.
Thanks in advance!
Nadeem Qureshi
(Expert) 06 February 2013
Dear Querist
the time period is 4 years and 240 days after completion of that period the employee can demand his/her Gratuity.
Raj Kumar Makkad
(Expert) 06 February 2013
The judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10 months 11 days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity but the holidays and leave shall be subtracted therefrom which shall bring it up to 4 years and 240 days.
Raj Kumar Makkad
(Expert) 06 February 2013
The judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10 months 11 days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity but the holidays and leave shall be subtracted therefrom which shall bring it up to 4 years and 240 days.
