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Narayanaswamy (CEO)     20 November 2011

Gratuity clarification

For the purpose of computing the entitlement for Gratuity, there is a rule that one has to complete 5 Years of service in the company.  While there is a judgement in the High Court of Madras  wherein it says 4 years and 240 days of service in the 5tth Year, one would be eligible for Gratuiry. I understand there is a Supreme Court Judgement confirming that the complete 5 Years is not required and 4 Years plus 240 days or 8 months service is enough to get the eligibility for claiming the Gratuity.  Can I have the details and if possible a copy of the judgement of the Supreme Court Judgement please?.

 

Thanks

 

 

R.Narayanaswamy



Learning

 6 Replies

Isaac Gabriel (Advocate)     20 November 2011

As per the Gratuity Act, while computing the tortal service,an employee who has completed 4 years and 7 months  is deemed to be rounded off to the full year.Hence, he becomes eligible for gratuity.The Madras High court has confirmed this with the judgement. As such one need not go in search of judgements for calculating the gratuity.

Narayanaswamy (CEO)     21 November 2011

Thank you very much for the clarification.  I need to know ehether there is a Judgement of the Supreme Court to support the Judgement of the Madras High Court?.

I heard that there is a Supreme Court Judgement.  If this is correct, can I have the same please?.

 

Thanks

 

 

R.Narayanaswamy

Tapan Kumar Dhar (D.M(HR))     24 December 2011

An employee is eligible for getting the gratuity as per the payment of gratuity Act 1972.

In April'2007 he was on duty & thereafter he was on without pay leave.

In Oct'11 he resigned.

My query is on what  Basic+DA his gratuity will be calculated?

a) Baisc+DA of Apri;2007 or

b) Basic+DA of Oct'11

It is pertinent to mention here the employee has not joined duty after April 2007.

 

Isaac Gabriel (Advocate)     25 December 2011

april 2007

Tapan Kumar Dhar (D.M(HR))     26 December 2011

Thank U very much for this clarification.

MANJUNATHA.L (MANAGER-ADMIN & COMPLIANCE)     12 January 2012

Sir,

Can i get the copy of the Judgement please.

regards,

Manju


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