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Puneet   29 June 2018

Gratuity eligibility criteria

Hello, I have worked in a software company approx. for five years in Chandigarh. Work days are from Monday to Friday. My details are mentioned here under: - Joining date: 16th Sep, 2013 - Last working date: 29th May, 2018 As far as I remember, I have not taken any leaves without pay. Only have taken leaves like casual, sick and PL leaves as required. As per my discussion with HR regarding the Gratuity, she said company will go by what is written in the offer/appointment letter. Questions: 1. Can you please let me know if I am eligible for claiming the Gratuity? 2. If yes, what is the procedure to claim the gratuity? Should I send an email to the HR of the company or how? 3. Also, what will be the approximate gratuity amount that can be claimed (if eligible). My last withdrawn salary slip states my basic salary as INR 23000/- (there is no DA component). Also, the gratuity component mentioned in the last year appraisal letter is INR 13269/ as a part of the CTC breakup- Look forward to your response. Thanks, PW


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 6 Replies

Pradipta Nath (Advocate)     29 June 2018

As you have held that your date of joining is 16-09-2013 and date of leaving is 29-05-2018, therefore you have worked for a period of 4 years 8 months and 13 days. Your las withdrawn Basic was Rs 23,000/-  so you Gratuity amount will be Rs 66346/- as per the POG Act.

Please apply in Form I under the Gratuity Rule to your HR and take a receipt from her. Please do not forget to attach your cancelled cheque with that for you want online transfer. Rest your HR will direct you! 

All the best for your new assignment!

2 Like

kameswarao S (Head HR)     29 June 2018

Mr.Puneet,

You need to work continuously for 5 yrs for becoming eligible for Gratutity hence you are not eligible for Gratuity as per payment of Gratuity act.

Thanks and regards

kamesh333

Puneet   29 June 2018

Dear Kamlesh, 

Can you provide the legal guidelines extract which states the same that I am not eligble as per the Payment of Grataity Act, 1972

Thanks,

Puneet   29 June 2018

Dear Pradipta,

Thanks for your kind response. Actually my company HR is saying that Gratuity is only applicable for 5 years of service. Can you suggest on this.

Thanks,
PW

 

kameswarao S (Head HR)     29 June 2018

Dear Mr.Puneet,

The Gratuity Act is common to all states but I remember in Tamilnadu the High court has given a veridict that employee is eligible in case he / she completes 4 yrs 240 days continuous service.

Thanks and regards

Kamesh333

Pradipta Nath (Advocate)     29 June 2018

If your HR is saying that Gratuity is applicable only on completing 5 years of service then let me firmly tell you that it is completely misinterpretation. The fact is that the HR has completely set aside the term 'Continuous Service'. The eligiblit criterion is 5 yeras of Continuous service and not just only '5 years of Service'. It is very clear that the HR has not considerd the term Continuous Service in reference to section 2A of the Gratuity Act. Every one who are a bit experienced HR professional knows this better. We all know that 4 years and in the fifth year it is 240 days or 190 days, as the case may be.

In case your HR is not accepting these sections, you may please apply for the gratuity, let them reject it, then we shall go for contesting it. As very specifically I have calculated you case and found that your service is just 4 yeras 240 days on a bottle neck!!


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