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Gratuity term

(Querist) 22 April 2013 This query is : Resolved 
Hello!
i would like know the minimum gratuity term to avail gratuity on/after resignation
some say it as 5 years some says 4 years 8 months
hence, need expert's opinion, pls help!
Adv k . mahesh (Expert) 22 April 2013
there is no amendment in gratuity act. hence five year eligibility now also applies. In case of you serviced 4 years and 240 days and if you continuously working in the same organisation means

Continuous service: – According to section 2A, for purposes of The Gratuity Act

1. An employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee.

2. Employee other than employee employed in seasonal establishment if he is not in continuous service within meaning of above point

(1) for any period of one year or six months, he is deemed to be in continuous service under the employer

a. For said period of one year, if employee during the period of 12 calendar months preceding date with reference to which calculation is to be made, has actually worked under employer for period of at least

i. 190 days in case of employee employed below ground in mine or in an establishment which works less than six days a week and

ii. 240 days in other cases.

b. For said period of six months, if employee during the period of six calendar months preceding date with reference to which calculation is to be made, has actually worked under employer should be half the number of days actually worked which constitute continuous service for period of one year i.e. ninety five days and 120 days respectively.
Rajendra K Goyal (Expert) 22 April 2013
I agree with the opinion of the expert K. Mahesh.
Mmayur (Querist) 22 April 2013
if employee is resigning on his will not due to any enforcement from employer, even then the above clause is true?
Kanagasabai (Expert) 23 April 2013
If the employee is resigning on his own and relieved before completion of 5 years of service, then he is not eligible for Gratuity.


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