Graduity
ganpharm
(Querist) 28 December 2018
This query is : Resolved
Hi, please tell me if I leave organisation at 4 yrs and 4 months, whether I am eligible for gratuity. The organisation has 5 days weekly working. Also, I if am not getting gratuity from the organisation as I am leaving at 4 yrs and 4 months period, then what about tax paid on the gratuity as it is part of CTC.
kavksatyanarayana
(Expert) 28 December 2018
A minimum service of 5 years (4 yrs.240 days) is required to get Gratuity.
Dr J C Vashista
(Expert) 29 December 2018
There are many questions involve in your query.
Eligibility for gratuity which is 5 years, however, on completion of 4 years 4 months you are eligible.
Kumar Doab
(Expert) 29 December 2018
GO thru the Gratuity Rules applicable to establishment
If Payment of Gartuity Act, 1972 applies go thru;2, 2A
[2A. Continuous Service.
(2) Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer-
(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; and
(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; 1[Explanation.- For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which-
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks].
(3) Where an employee, employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.] 3. C
4. Payment of Gratuity:
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer
And Rules framed under the Act in your state.
Kumar Doab
(Expert) 29 December 2018
Employee can apply 30days before LWD in eligible cases as per;
THE PAYMENT OF GRATUITY (CENTRAL) RULES, 1972-1
7. Application for gratuity.-(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer: Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.
Employee may submit FormI under proper acknowledgment after LWD and mention that ‘Notice of Determination of Gratuity is not supplied and payment is also nt supplied and both may be supplied thru redg/speed post.
Employer is under obligation to reply and pay in eligible cases or has to tender interest @10%pa for delayed period from 30days after LWD.
1st thing is that establishment is to agree to pay as Gratuity.
Tax part comes later.
Kumar Doab
(Expert) 29 December 2018
Vashistaji has posted direct affirmative response to your query.
You may request Vashistaji for relevant citations and IT shall help one and all.
