Dear Friend,

Please note that a person who has completed his service of 5 years under one employer , will be eligible for the Gratuity.

Dear Mr. Krishna,

For getting gratuity, employee has to complete 5 years at a streach service with the same employer then he become eligible for gratuity. once he has completed 5 years then after that if works for 5 years 6 months and 1 day then he is eligible for for 6 years gratuity.

Regards,

S.V. Deshpande

If you prove that, you have worked 240days in every year then only you can claim grauity under Payment of gratuity Act.  You have mentioned in your querry that, you work five days in a week so in every, hence certainly you are not entitled to claim grauity under the Act. See section 2A of Payment of Gratuity. 

Advocate Nikesh Shetty, Mangalore

Dear Friend,

You are not eligible for gratuity because in 5 th year you have not worked for 240 days.

Based on the decision of Madras high Court, the ruling state that if the eligible employee has completed 4 years and 240 days in the fifth year contineously then he/ she must be deemed to have continously served for one year and therefore it is deemed that he/ she has completed five years ans therefore would be elegible for Gratutity.

pl see Madras high court decesion

rajk gupta

sir i have joined organisation on 30April2007 and left on 24/12/2011 so please guide me that am i eligible for gratuity or not???

PF and Gratuity are covered under Social Security Laws. The gratuity act is to benefit the employee and employer should on its own arrive on a conclusion which benefits the employee.

Payment of Gratuity Act, 1972

Section: 2A
Continuous service.

For the purposes of this Act, -

(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case;

SC and Madras HC judgments are enclosed.

SC judgement:

"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."

HC judgements is also attached.

Kindly go thru a very informative thread at LCI:

Forum Home > Labour & Service Law > Gratuity > Clarity between gratuity eligibility service (5 or 4.8 yrs)?

at the following link:

https://www.lawyersclubindia.com/forum/Re-Re-Re-Clarity-between-gratuity-eligibility-service-5-or-4-8-yrs--28768.asp

Learned SC and HC have set aside the tantrums and opinions of employers and have reaffirmed the provisions of the act. Supreme Court and High Court have not disputed the provisions of the act. Both have precisely validated the provisions of the act. The controlling Authority of Gratuity understands the bare act and provisions and judgment of the courts.

In all probabilities Controlling authority shall take start from DOJ and then take date of reference.

Valuable advice of learned experts/members is sought.

Hi

I will be completing 4 years and 210 days of continous service at the time of leaving the organization. We followed  a 6 day week for two weeks and 5 days for the balance two weeks  for the first 4 years with 2nd and 4th saturday's off  .For last few months only 2nd saturday is off and the other three weeks are 6 days .Please advise if I am eligible for the gratuity payment. My date of joining was 01-07-2008 and date of leaving will be 27-01-2013 .

regards

BNM

If possible extend your date of leaving and complete continuous service of 240 days in 5^th year. {Employee can withdraw resignation before effective date of resignation/last day in office/expiry of notice period.

Supreme Court of India

Nand Keshwar Prasad vs Indian Farmers Fertilizers ... on 1 April, 1998}

You have posted that:

We followed  a 6 day week for two weeks and 5 days for the balance two weeks  for the first 4 years with 2nd and 4th saturday's off  .For last few months only 2nd saturday is off and the other three weeks are 6 days 

You may rake up the issue and contest that it was practically 5 days a week as a month has 4 weeks and 2^nd/4^th Saturday was off and last two weeks were 5 days a week.

The latest changes are to escape liability of payment of gratuity.

If the remuneration paid to you is by CTC and in your appointment letter CTC is referred and CTC sheet is enclosed and accepted by you and gratuity is mentioned in CTC sheet you may rake up the issue as contractual obligation of the company even if 5 years continuous service is not completed.

However before you rake up the issue approach a competent and experienced labor consultant/service lawyer with copies all relevant documents /records and give inputs in person. Let your lawyer evaluate the merits and formulate a strategy on how to proceed.

You may proceed under expert advice of your lawyer.

Kumar Sir, your reply is excellent. It covered all aspects of eligibility for  Gratuitity 

Hello Professionals,

Request your guidance in below query. I am working with an MNC (follows 5 days week) from 04-Feb-2009 onwards. I am covered under Gratuity Act of 1972 per Offer Letter. Let me know, by when will I be eligible for Gratuity ? I am planning to quit the job in coming months. Please guide.

Refer to:

Section: 2A
Continuous service.

(2) (a) (i) (ii):

Count 4 years from DOJ.

In 5^th year count 190/240 days………………….the date of completion of uninterrupted service of 190/240 days shall be your date of reference to which calculation is to be made…………..

The Act is clear.

The judgments delivered by the courts lf law are for 240 days in 5^th year.

Hence it is assumed the companies and employees in question in such court cases were operating on 6days/week.

In case of a dispute the matter shall land up before Controlling Authority of Gratuity which could be DLC in o/o Labor Commissioner at your location and you can approach a lawyer specializing in such matters. You can approach both in advance.

Weigh all pros and cons and decide as suitable to you.

Valuable advice of learned experts/members is sought.

Thanks for the reply Sir. Is 190 days meant working days (or) calendar days.

It is felt that the interpretation may be taken as number of paid days in a week, which in case of monthly rated employee are 7 (although the company works on 5 days/week).

All paid days thus including leave with pay, EL, holidays, lay off………………as explained in Sec2A should be counted.

You are expecting a dispute.

It has been posted earlier and it is reiterated that you may seek a legal opinion from a lawyer specializing in such matters, and proceed under expert legal advice of your lawyer.

Valuable advice of learned experts/members is sought.