Gratuity eligibility.

It is felt that if the employee has satisfied the condition mentioned by you in first 5 years then in later years he may have not to.

Valuable advice of learned experts/members is sought.

Dear Mr. Kishore,

 If there is no break or suspension or bad record in the service, then he is eligible for 14 years gratuity.  Whether he resigned from service? 

Dear Mr. Murthy

Thanks for your response.

The particular person has resigned from service.

Can you site us any case law or interpretation of section for your reply.

will there be any change in your reply if the particular person has expired.

Thanks & Regards

Kishore Choudhury

The Payment of Gratuity is a social security enactment and the concerned employee or nominee/legal heir may act as per the provisions of the enactment.

Sec 7: The responsibility on the employer has been fixed to issue notice to the beneficiary

“whether an application referred to in sub-section (1) has been made or not………”

And to pay the Gratuity within 30 days.

The no of working days/ year or per 6 months have also been explained and inserted in the Act as a result of various court judgments and notifications.

You may read the Act in its sequence.

Section: 2
Definitions.

(e) "employee" means

Section: 2A
Continuous service.

(1)

(2) (a) (b)

Section: 4
Payment of gratuity.

(1)   Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years

b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs,

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned:

Section: 7
Determination of the amount of gratuity.

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined.

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

(4)

(a)

Section: 8
Recovery of gratuity.

Section: 9
Penalties.