veeraraghavan (senior software engineer) 20 January 2015

Gratuity eligibility - 4 years 190 days or 4 years 240 days?

Hi Experts,

I have a query here.

i joined a company on 21st Jun, 2010 and will be getting relieved on 28th Jan, 2015. In total, my service period in this company would be 4 years 7 months and 1 week. It is an IT company which works for 5 days a week and is based in Chennai.

The HR of the company says that, I must complete 240 days on the day I get relieved.

As per the Gratuity Act 1972 , I read a clause which states that, 190 days for the employees who work in the mines or company which works for 5 days a week.

Am I eligible for claiming gratuity from my company?

Your inputs will be very much useful to proceed in this issue.

Thank you,

Veeraraghavan.

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19 Replies

Kumar Doab (FIN) 20 January 2015

Your understanding on 190/240 days is right.......

Submit FormI under proper acknowledgment ,30 days before LWD.

Let the company reply or extract a reply in writing that it pays only if employee has worked for 240days/year....

Jai Karan Nagwan (consultant) 20 January 2015

You are not eligible for gratuity.

veeraraghavan (senior software engineer) 20 January 2015

Thanks kumar daob ji.

Jai karan nagwan ji thanks for the reply .I would hear a clarification .why I am not elibigible ?? And what does the highlighted clause that I have posted regarding 190 days literally mean??? Why am not eligible even when I have served220 days and also working in a company which works for 5 days a week.

Your response will be very much helpful.

Kumar Doab (FIN) 20 January 2015

Submit FormI under proper acknowledgment ,30 days before LWD, preferably by Regg. post and confirm submission by email and attach scanned copies by email of FormI.

Let the company reply or extract a reply in writing that it pays only if employee has worked for 240days/year....

Once the company tenders written reply even if by email, come back with reply in this thread....

Karthikeyan (manager) 22 January 2015

Mr. Jai Karan Nagwan.. Please let us know why he is not eligible for gratuity.. I am always seeing conflicting answers from experts on this issue without any justification... If you do have any understanding of the Act please explain.. Else do not give misleading statements... Thank you...

Karthikeyan (manager) 22 January 2015

Jai Karan Nagwan (consultant) 24 January 2015

Dear Kartikeyan Good evening to you! I didn't expect so hard words from the professional like you, yet I can expect the reaction as you did from queriest, as he is effected one and not from you as know how gainer on the subject. I'm surprised. Whatever, I hereby suggests as to why 190 days constitute a year in the establishment works below the ground or where is 5 days week that when a person work below ground, one cannot expect longer work due to tough working condition in the mines, on the other hand estt. Works 5 days, will not be able to complete 240 days in a year, so to bring in balance 52 week day have been minused from 240 days and resultant it becomes Appx. 190 days working day, hence will constitute a year in 190 days in establishment work less than six days in week. Please don't ask any judgement on this, as on there is no judgement on this. Hope this clarifies and all the best and let the queriest decides his own case now..

Karthikeyan (manager) 26 January 2015

Hi Jai Karan Nagwal, first of all I apologize for my words.. I would like to inform you that even I am going through the same situation as initiator, you find few posts on this from me few months ago.. Even I got mixed responses on this.. And no one explained for denial of gratuity. Since any one can comment on a forum I didn't want some eligible employees to lose Gratuity.. I couldn't find any cases to support 190 days clause.. Everyone talked about 240 days of some Madras High court ruling.. as per one of the expert said I am eligible I have filed a case on labour office and waiting for their stand on this.. Once again I apologize

Jai Karan Nagwan (consultant) 26 January 2015

Happy Republic day to you & all! This is fact, as I said above that, as on date there is no case, which debated on 190!days clause. This is one of the best interpretation here.

veeraraghavan (senior software engineer) 25 February 2015

Hi Experts,

Thanks for all your replies.

I had discussion with my HR and they finally accepted that i am eligible for gratuity.

i got relieved a month ago .At this point of time when i check with my HR they say your Gratuity claim is rejected by LIC .

Can somebody help me on this to take forward.

Kumar Doab (FIN) 26 February 2015

You have posted that:

"I had discussion with my HR and they finally accepted that i am eligible for gratuity.

i got relieved a month ago .At this point of time when i check with my HR they say your Gratuity claim is rejected by LIC .

Both the statements are conflicting.

How and why :The approval or declinature by LIC (the insurer that has issued a policy as per T&C conveyed by employer) should have any bearing on You?

If you are eligible: the employer has to tender the payment of Gratuity from its own resources and comply to its statutory obligation or face penalty and punishment as enshrined in Sec;9 that provides for jail time too.

If company 's designated personnel in HR has communicated ( if in writing it is better;; if minuted by you it can still help) that you are eligible then it can't backtrack now.

Moreover employer can provide better terms/benefits of Gratuity by its sweet will.

Vikas Dharmendra (Consultant) 17 January 2017

Hi Veeraraghavan,

What is your gratuity claim status as I am also getting released in 4 years 190 days. and my organization alos have gratuity trust with LIC. till now they are telling that its 4 years and 240 days. Have you received your gratuity and if so how you proceed. your experience may help me.

Thanks

Vikas

Kumar Doab (FIN) 21 January 2017

@ Vikas Dharmendra,

You can download the judgment also from;

https://www.lawyersclubindia.com/forum/Gratuity-eligibility-124335.asp

(Guest)

@ Vikas Dharmendra,

As per last advice of Mr. Kumar Doab, with specific reference to the nature of problem being discussed, could you get any purpose solved by downloading the judgment, as available in the thread:

https://www.lawyersclubindia.com/forum/Gratuity-eligibility-124335.asp

If you are still confused or got more confused, you will be justified to ask him in what way and what part of that judgment can help you to solve your problem,