Clarity between gratuity eligibility service (5 or 4.8 yrs)?

Can somebody suggest very recent case when someone fought and won his gratuity while his service tenure was less than 5 years but more 4 years and 240 days?

As suggested by Mr. Mishra all memebers/experts are requested to provide latest judgements.

The o/o Controlling Authority in each area may be in a position to provide latest decided cases.

Originally posted by : Rama mohan Acharya
	I can add that in the case of  Mettus Beardsell Ltd.  Madras Vs. RLC(C) , 1998 LLR 1072(Mad), the Apex court categorically held that An  employee who has put in his service for a period of 240 days in fifth year will be deemed to have continued in service for 1 year and he/she is entitled for gratuity.

Dear Sir, 

I will be grateful is you please provide me a soft copy of the Judgment.

Thanks and regards

M.S.Iyer

@ Mr. Iyer,

The judgement sought by you has already been attached in this thread.

48866875_13_13_gratuity_20_20madras_20hc_20judg_5b1_5d_1_.pdf

Thanks Sirji. 

Can somebody suggest very recent case (from 2005 onwards) when someone fought and won his gratuity while his service tenure was less than 5 years but more 4 years and 240 days?
 

Hi,

I am working as a manager in a company whose current strength was 9 but the company fired 2 people for no reason. Now they are in the process of recruting new people out of which One person has already joined and two more are expected to join during this month. as per gratuity act, it is compulsory for all companies with minimum size of 10 employees. 

I personally am looking to quit the company to give more attention to my family. i have completed 6 years service in this company. I have to service a notice period of 60 days as per my contract. so if i submit my resignation now and during the course of my notice period, the company strength crosses 10 people, will I be eligible for gratuity. Please clarify as early as possible. also would like to know the procedures to be followed if the company fails to honour the gratuity act.

Best Regards,

Vidya

You may need to prove before and from your date of joining at any point of time the number of employees was ten or more. Payment of Gratuity Act, 1972 Section: 1 Short title, extent, application and commencement. (3) It shall apply to¬ - (a) every factory, mine, oilfield, plantation, port and railway company; (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months; (c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf. (3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.] Section: 2 Definitions. (e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].

My request is still pending to provide confirmation on any recent case (from 2005 onwards) when someone fought and won his gratuity while his service tenure was less than 5 years but more 4 years and 240 days?

Please see the provision in section 4(2) of the Act.It states that every six month shall be computed as one year.So,issue form I tothe management.

Form I already submitted 3-4 months back. Company is not replying in writting but saying that no company is paying before completeing full 5 years. If you can bring recent cases, we will look into.

Pl suggest.

Dear Sir,

I am working as a manager in a company whose current strength was 9 but the company fired 2 people for no reason recently. Now they are in the process of recruting new people out of which One person has already joined and two more are expected to join during this month.

As per gratuity act, it is compulsory for all companies with minimum size of 10 employees. I personally am looking to quit the company to give more attention to my family. I have completed 6 years service in this company. I have to service a notice period of 60 days as per my contract.

Currently my company employee strength is 7 people. 3 people have been selected and are expected to join the company in the next 30 days. So if I submit my resignation now and during the course of my notice period (60 days), the company strength crosses 10 people, will I be eligible for gratuity. Please clarify as early as possible. Also would like to know the procedures to be followed if the company fails to honour the gratuity act.

Best Regards,

Vidya

Dear Mr Gabrial,

I am told max gratuity payable is ten lacs...this looks quite ridiculous ..this means a person who is serving more is loosing gratuity every year. 

If a person has worked for 10 years in an organisation and his last drawn basic was 3 lacs then what i assume is that his gratuity amount would be    3X10X1/2=15 lacs so in such a case would he he get only ten lacs..or he would get get 15 lacs out of which 10 is non taxable and 5 is taxable.

can you please clarify this.

regards

ARJ

For Category of “Other Employee” previously the Limit defined under the Income Tax act, was 3, 50000.  So amount in excess of 3.5 lakh was taxable in hand of such employees.

Union cabinet on Thursday (04.03.2010) gave its consent for enhancing the gratuity limit at the time of retirement to Rs 10 lakh.

Gazette Notification enhancing the limit is attached.
 

Gratuity exemption Limit enhanced 10 Lakh Income tax wef 24.05.2010-Notification 41/2010

Friday, June 11, 2010 18:28 IST The Central Board of Direct Taxes has approved notification of ten lakh rupees as the maximum amount of gratuity entitled to exemption under sub-clause (iii) of clause (10) of section 10 of the Income Tax Act 1961.

Employee may seek relief under sec 89{1} on taxable amount of gratuity.

It shall be appropriate to seek advice and help of competent and experienced CA/Income tax lawyer……the method to calculate is different from the one applied for salary received under Arrear/Advances.

Valuable advice of learned experts/members is sought.

Desr Mr.Amir,The calculation shall be  as follows:-

                                                                   3x10x15/26=17.3.

The gratuity act permits upto 10 lakhs.But, the employer is at liberty to grant  more than the ceiling,which is permissible under section 4(5) of the gratuity Act.Neverthless,income tax is exemplted upto 10 lakhs.