Gratuty

No gratuity entitlement arises if the employee has been in continuous employment for a period of 5 years.

thanku sir, but employer is removing us after 4 years(on role) service,

Payment of Gratuity Act/Rules, an employee who completes five  years of uninterrupted service under one Employer is eligible for Gratuity.  The only exemption of this condition is to  the employees  who has  expired or is declared medically unfit.

What are terms of employment. Was it a fixed term contract or regular employment.

vasudevan

Dear Sir,

It is regular employeement and the contract ends by 2014 June.

Thanku

sateesh

Dear satish

ccording to Gratuaty act. 5 year is compolsury for get gratuaty benifits

The employee should have completed 4 continous years and 240 days in the 5th year, then he is eligible for getting Gratuity.

Therefore if any employee completed 4 years 8 months (completion of 240 days in 8th month), then he is eligible for gratuity.

VIJAY

i agree Mr vijay Kumar Ji

Can one paerson draw gratuity while shifting freequently? if answer is yes,what is the Tax excemption available to him?is it calculated from company to company individually or gratuity amount put together for all the cases?Please clarify.....since we have the live case with us.........

Dear all,

In supporting my argument that an employee who had completed continous 4 years and 240 days in fifth year will be eligible for gratuity, I have given Madras High court judgment below.

Mettur Beardsell Ltd, Madras  Vs. Regional Labour Commissioner, Madras & others (1998 LLR 1072)

PAYMENT OF GRATUITY ACT, 1972 - Sections 2 (a), 2 (b), 2 (c), 2 (e) and 2A - 'Continous Service' - Qualifying period of service by an employee - Entitlement of Gratuity - An employee  rendering continous service for a period of 240 days in a year will be deemed to have continued in service for one year as stipulated by Section 2A of the Act -  Thus an employee who has put in service for 10 months and 18 days for the fifth year subsequent to first 4 years should be deemed to have completed continous service of five years - His claim for gratuity is tenable.

VIJAY