Gratuity payment for 4 years and 190 days
Sarveshwar
(Querist) 18 December 2012
This query is : Resolved
There are several references to 4 years and 240 days being the minimum time required for being elgible for gratuity. But a clause in gratuity law, while referring to continuous service, states " 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;"
Now for software companies that work monday to friday, does it mean that it is sufficent to complete 4 years and 190 days to be eligible for gratuity? If not to what establishments does 190 days apply?
ajay sethi
(Expert) 18 December 2012
Most people referring the Act only refer to Section 4 and infer that a minimum of 5 years of service is required for Gratuity – but if seen in light of the previous DEFINITIONS of continuous service it is clear the Act implies that 4 years and 240 days/190 days (depending on the number of days the organization works in a week) is enough to satisfy the requirement of continuous service for not less than five years, as stated in above Section 4 – Payment of Gratuity
Sarveshwar
(Querist) 18 December 2012
Ajay,
Thanks for the Clarification. My organisation works for 5 days a week. But they seem to want to stick 4 years and 240 days instead of 4 years and 190. Is there any reason/justification on why they can take this stand? They say it is only applicable to certain kind of establishment though the clause does not state anything like that.
Thanks,
Sarvesh
ajay sethi
(Expert) 18 December 2012
in an establishment which works for less than six days in a week;"
since in your company you are working for 5 days in a week then it is sufficent that you work for 4 years and 190 days to be leigible for gratuity.
R.K Nanda
(Expert) 18 December 2012
no more to add.
Raj Kumar Makkad
(Expert) 18 December 2012
In the light of given facts, you are definitely entitled for the grant of gratuity as you have fully complied with the requirement.
Sarveshwar
(Querist) 22 December 2012
Thank you to all the experts who answered this question. The clarification given by you has help take the discussion forward in my organisation.
Hope this post will be useful to others too since thus particular aspect has not been clarified in any of the site.
Thanks,
Sarvesh
Guest
(Expert) 22 December 2012
Others may or may not take advantage of this discussion, our main concern is, whether this discussion has helped you or not.
Sarveshwar
(Querist) 24 December 2012
Mr.Dhingra,
It has certainly helped me. The organisation has decided to take professional help (legal opinion) to update their policy accordingly. I am expecting it to be favorable to me.
Thanks,
Sarvesh
Guest
(Expert) 24 December 2012
Wish you good luck!
Raj Kumar Makkad
(Expert) 29 December 2012
Sarveshwar! You may update your query at any time if need arises in this respect.
