Do Gratuity Required Complete 5 years as a Continuous Service
By virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)],
It is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service.
As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and 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.
4 years and 6 months (190 days = 1 year) where the company follows 5 day a week
4 years and 8 months ( 240 days = 1 year) where the company follows 6 day a week is eligible for gratuity.
The payment of gratuity ( second amendment) act, 1984 clarifies this. One needs to calculate the no of years and service completion as follows.
A company which follows 5 day week
Doj 1.05.2000 -
01.05.2000 to 30.04.2001 - worked for 190 days = 1 year
If we go by the above formula and if the person does not have any break in service he will be eligible for gratuity on 01.11.2004
The gratuity will be paid based on date of joining and completion of years of service. It is not based on 4 yrs and 216 days. If the person crosses 5 years of service within that 216 days, then he need to be paid, i.e, based on the date of joining of an employee, the day when he completes 5 years of service, he will be eligible to get the gratuity. But whereas the calculation will be rounded off to the next higher or lower fraction after his 5 yrs completion. So no one will be eligible to get gratuity if he is not completed 5 years of service.
The gratuity will be paid when an employee dies before completion of 5 years service, and will be paid to the dependent family member or nominee
17 comments:
Hi, one of our employee completed 4 years and 10 months. We have week off on Sunday and 1st,3rd Saturday. He is eligible for Gratuity or not? Pl suggest.
Yes, if he or she has completed 240 days of working uninteruptedly.
Hi, I have completed 4years, 6 months and 18 days. Can anyone let me know, will I be eligible for the gratuity?
As my company works 5 days a week.
Hi,
I have joined nov 27th 2014 and completed till october 14th 2019. If i resign on 15 th october am i eligible for gratuity?
I have completed 4 years 5 months and 13 days with my firm which follows 5 days a week. Am i eligible for gratuity?
Date of joining Organization: 19th December 2013
Last working day: 17th July 2018
About working days in week: In my current organization there are different weekly off groups.
Groups are like following
Group A: 5 working days a week
Group B: 5.5 working days a week
Group C: 6 working days a week
In my whole tenure with this organization have worked in ‘5 working days a week’ group.
However, organization has declined for gratuity saying that organization has 6 days working policy so I fall into section 2A (2)(a)(ii) of gratuity act so I am not eligible.
My argument is I fall into 2A(2)(a)(i) of gratuity act as I have been assigned to group A.
Following organisation policy/documents support my 5 days working argument,
- Leave Policy
- Daily Timesheet shows Saturday/Sunday as weekly off Kindly advise.
Hi.. Did you got your gratuity?
hi
Date of joining Organization: 23rd December 2014
Last working day: 06th December 2019
About working days in week: In my current organization there are different weekly
Group A: 5 working days a week
i eligible for gratuity?
I joined my current organisation on april 6 2015 and my last working day is jan 10 2020 will i be eligible for gratituty
Hi
I have worked for 4 Yrs 11 months & 18 days continuously in an organization employing more than 10 employees. I think I am eligible for gratuity. What should I write in gratuity claim form for no of years completed 5 or 4?
Provide exact Year & total number of days
Provide exact Year & total number of days
Provide exact Year & total number of days
Provide exact Year & total number of days
My date of Joining is December 07, 2015 and date of exit is July 30, 2020. I have worked for 4 years, 7 months and 23 days which translates to 4 years & 237 days. Working culture was 6 days a week. Am i eligible for gratuity?
Hi I am planning to leave my organization notice period that I have to serve would be 1 month
my Date of joining in the company is 21 june 15 what date would i be eligible for gratuity .
and is that date that you would be providing includes the notice period too.
5 Days working
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