Graduity claim

As per an earlier post:

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

The gratuity eligibility service as per Gratuity Act 1972 is 5 years.

But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.

"Judgment from Supreme Court:

"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."

Quotation from the book:

Law Book (Bare Act,2004) i.e. The Payment of Gratuity Act,1972 (Publisher: Law Publishers () Pvt.Ltd. 18A-S.P.Marg,Post Box-1077,Allahabad-211 001. Phone:623735,623741 Fax-0532-622276.website: lawpublishersindia.com

1. 4 years and 6 months (190 days = 1 year) where the company follows 5 day a week.

2. 4 years and 8 months ( 240 days = 1 year) where the company follows 5 day a week.

Is eligible for gratuity.The payment of gratuity ( second amendment) act, 1984 clarifies this. One needs to calculate the no of years and service completion as follows.

A company which follows 5 day week

Doj 1.05.2000 -

01.05.2000 to 30.04.2001 - worked for 190 days
01.05.2001 to 30.04.2002 - worked for 190days

If we go by the above formula and if the person does not have any break in service he will be eligible for gratuity on 01.11.2004 "

Therefore, you stand eligible.

well elaborated

You have posted that:

---“ I joined an Indian IT company on june 30 2008 in USA as employee of the "Company" . The appointment letter states the name of the company same as its name registered in India.”

The company which issued appointment letter to you in USA might be the overseas arm of the company duly registered in USA.

The company registered in India might not have issued the appointment letter to you.

 ---“ Comapny paid social secuity benefits to US dduring this time”

The company in USA did not default on providing social security benefit.

--“ I have served 259 days in India.’

“The company follows 5 days a week calender.”

“Now for gratuity claim - Comapny says " As per  rules of the company , it will pay gratuity to me if I had spent one year in India"”

“I qhave served for more than 180 days in India.”

Payment of Gratuity Act, 1972

Section: 2A
Continuous service.

The Section 2 (a) (i) -----190 days = 1 year if company operates 5days/week.

You may press for payment of gratuity for 1 year of service in India.

If you succeed for payment of Gratuity for entire length of service, we will be happy.

Please keep the thread updated with developments.

Quick clarification.   Should the total working days be 190 days or calender days should be atleast 190 days for one to consider one year of continous service.