I have completed 4 years and 240 days in January 2018, in a company. My 5 years are getting completed in May 2018. am I eligible for gatuity? To avail this benefit when shall I resign ?
1.You are eligible for payment of gratuity after completion of 5 years of service in your Company as a permanent employee.
2. You should resign thereafter.
3. Before resigning enquire from your HR whether the Company has entered your employment details properly evidencing that you have worked with them for the last 5 years or not.
To be eligible for gratuity, you must complete 5 years continuous service.
2) Continuous service means uninterrupted service. But, it does include the interruption due to, leave, sickness or accident.
3) Madars High Court has held that an employee who has completed 4 years and 240 working days in 5th year will be entitled for gratuity i.e. 4 years 10 months and 11 day.
After completion of 5 years to be eligible for gratuity.
Yes you will be eligible for gratuity only after completion of five years of regular service, If you are interested to resign then put down your papers after completion of five years only, then only you will be eligible for the .
I have a notice period of 3 months so if I resign by mid March 2018 then, my 5 years will be completed by may 2018 if I serve full notice period ..will it be fine then? Does notice period will be part of five year's service time ??
1) Yes notice period is part of service time. As you're working full time employee.
2) If you resign in the month of March 2018 and serve notice period till May 2018, you're 5 years service gets complete.
Please give rating to me.
You have already completed 4 years and 240 days in the fifth year
You are at liberty to resign and would be entitled to gratuity
1. You shall be working full fledged during your notice period also. So, your notice period will be considered as part of your service period for the purpose of payment of gratuity.
2. Make sure that your employment with the Company has been recorded from the date of your joining about which you have the evidence.
The gratuity eligibility service as per Gratuity Act 1972 is 5 years. But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days. "Judgment from Supreme Court: "Yes, 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."
Yes the notice period will be calculated as the time of service
Regards
You can get gratuity after completing continuous service of 4 years and 7 months. Since you have completed service of 4 years and 8 months, you are entitled to get gratuity.
Even if you do not serve in the notice period, you are entitled for gratuity. You can get gratuity after completing continuous service of 4 years and 7 months.
Dear User
Noted the contents of your post.
Make sure that, your contribution is made to date by your Employer for the said period.
Check your contribution online (for compliance of statutory period).
Your contribution will be considered for five day week working and six day week working (check where you fit).
Finally, your option to give notice and serve notice is okay subject to compliance of the provisions.
Good Luck
Legal requirements are 5 years but notice period is a contestable person not properly defined. Better check your organisation if the except this way.
Yes.If you serve a notice 3 month in advance before completion of 5 yrs of service
No notice period is not counted in computation of gratuity
Notice period will be considered as part of employment and experience and will be considered in computing gratuity.
Yes, it is the part of the employment. It is just that you are intimating the company to find a person to fill your place.
1. To be eligible to gratuity one has to complete 5 years of continuous service which means uninterrupted service.
2. On the completion of 4 years and 240 working days in 5th year the employee will be entitled to gratuity.
3. So you are free to resign,
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."
1. 4 years and 6 months (190 days = 1 year) where the company follows 5 day a week. 2. 4 years and 8 months ( 240 days = 1 year) where the company follows 5 day a week. Is eligible for gratuity.The payment of gratuity ( second amendment) act, 1984 clarifies this
I have a notice period of 3 months so if I resign by mid March 2018 then, my 5 years will be completed by may 2018 if I serve full notice period ..will it be fine then? Does notice period will be part of five year's service time ??
SErving the notice period and the notice period itself shall be treated as service hence you will be eligible
If you have completed five years of your continuous service you are eligible for the payment of gratuity.
Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than five years – (a) On his superannuation, or (b) On his retirement, resignation, or (c) On his death or disablement due to accident or disease. An employer will be liable to pay gratuity to the legal heirs/nominees of the deceased employee even if the employee had not completed five years of service. For every completed year of service or part thereof in excess of six months the employer shall pay the gratuity.
