• Gratuity

I have worked with a company named Fareportal from 20th April 2015 till 30th Jan 2020 which is 4 years and 9 months. Am I eligible to get gratuity? Gratuity law is a central government law or a company law? In case I am eligible to get gratuity but my company says that you won't be getting gratuity since you haven't completed 5 years, what needs to be done.
Asked 4 years ago in Labour

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21 Answers

 

 

1) MADRAS HIGH COURT has held that an employee, who has put in service of 4 Years 10 Months and 18 Days in the 5 years, will be entitled to gratuity.

 

2) 

As per the Provisions of Payment of Gratuity Act, period of completed service exceeding six months continuously shall have to be reckoned as full year of service for the purpose of calculation .

 

 

3) Under the circumstances, you will be entitled to gratuity treating

the period of continuous service as five years.

Ajay Sethi
Advocate, Mumbai
94713 Answers
7530 Consultations

5.0 on 5.0

1.An employee who has completed more than 4 years and 190 days continuous  service is entitled for gratuity, if it's in an establishment which works for less than six days' in a week.

2. However for an establishment which works for 6 days' in a week, the eligibility for gratuity will be 4 years and 240 days' continuous service. (4 years and 240 days' to be reckoned. as 5 years, as per Payment of Gratuity (Amendment) Act, 2018).

3.  You are entitled to gratuity either way, i.e., since you have worked for 4 years and 270 days', you will be entitled to gratuity whether your employer had followed 6 days' working in a week or less than 6 days' in a week.

4.  Whether it's 4 years and 190 days' or 4 years 240 days' depending on whether your employer follows 6 days'in a week or less than 6 days' in week, you are entitled for gratuity as you have completed 5 years continuous service. 

5.  The Payment of Gratuity Act, 1972 is a central act.

Shashidhar S. Sastry
Advocate, Bangalore
5115 Answers
314 Consultations

5.0 on 5.0

Yes you are eligible to get Gratuity, i.e., if any employee puts in continuous services of four years and eight months (240 days) he / she is eligible for Gratuity.  

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

You would be eligible for gratuity.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

1. In case you have complete 4 years and 240 days in the company then you are eligible for gratuity as by 240 days the year shall be considered completed.

2. If company refuses to pay gratuity a complaint before the labour commissioner can be made

 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Continuous service for 5years is the eligible criteria for gratuity. 

Since service rendered by you is less than 5years you are not eligible for gratuity benefits. 

If you actually worked for not less than 240 days during the last 12 moths starting from 20.4.2019, it would be treated as one completed year.  In that case you would be eligible for gratuity. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

Payment of gratuity is governed by the payment of gratuity act and this law is applicable to the whole of the India if you have completed 5 years of continued services as per sec 2A(1). you will be eligible for payment of gratuity by the company since you have not completed five years of your service with the company you are not eligible to get payment of gratuity

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Hi

It is 4 years and 9 months.

While 4 years and 10 months would have made you eligible for gratuity .

Seems not possible now..

Still you can file a specific performance suit against the company to pay you gratuity.

Thanks

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Dear Sir,

You may read the following information on Gratuity

==============================================

4years 240 days is enough for claiming gratuity.

 

The term "Completed Year of Service" means continuous service for ONE year.

An employee is said to have rendered continuous service, if -

  1. He has been in uninterrupted service, including service interrupted by sickness, accident, absents from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the fault of the employee. [Note: if an employee having been superannuated is re-employed by the employer without any break in service, he will be eligible for payment of service]
  2. In case of mine or non-seasonal establishment working for less than SIX days in week, he has actually worked for at least 190 days [in Mine] during the period of TWELVE months or 95 days, during the preceding SIX months, he shall be deemed to have rendered continuous service for a period of ONE year or SIX months, respectively.
  3. In a case of any other non-seasonal establishment, he has actually worked for at least 240 days during the preceding 12 months or 120 days during the preceding SIX months, he shall be deemed to have rendered continuous service for a period of ONE year or SIX months, respectively.
  4. In a case of a seasonal establishment, he has actually worked for at least 75% of the days on which the establishment was in operation.

For this purpose, an employee shall be deemed to have worked on a day on which:

  1. He has been laid-off under an agreement or in accordance with standing orders;
  2. He has been on leave with full wages, earned in the previous year;
  3. He has been absent due to temporary disablement caused by accident arising out of, and in the course of his employment, and
  4. In the case of a female, she has been on maternity leave not exceeding TWELVE weeks.

In order to explain it better, we have compiled a list of frequently asked questions along with answers.

FAQ-1 Natasha joined ABC Limited on 2nd June 2003. She was on maternity leave from 1st September 2006 to 31st March 2007. After delivery of her baby, she decided to take a break for one year. She joined back the company on 1st April 2008. Eventually, she resigned on 15th September 2011. Will she be entitled to Gratuity?

Answer: NO, she is not entitled to Gratuity. Even though she joined the company on 2nd June 2003, however, she took a break of ONE year. After re-joining the company on 1st April 2008, she didn't complete the minimum required continuous service of FIVE years and hence not entitled to gratuity. Her second stint with the company will be considered as new employment.

In this case, for calculating the eligibility, you must consider the following -

  1. Was she on company roll during her break of one year?
  2. Has she been paid during her break?

If and only if, your answer to both questions is yes, then only she will become eligible for gratuity and her gratuity shall be calculated for EIGHT Years.

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

Hi 

In law , if the employee works for 240 working days in a year, then it is considered as 1 year.

Since you have completed 4 years and 9 months of service, you are eligible to obtain gratuity.

Gratuity law is under Payment of Gratuity act and this is a central government act and binding all companies including fareportal. 

Please issue notice to Fareportal claiming gratuity amount and in case, they do not pay you your gratuity, please initiate legal steps against fareportal.

Hope this information is useful. 

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

Dear Sir,

Any law passed by government is never private and hence Payment of Gratuity Act is also a central government law. As per this, the eligibility for gratuity is 5 years but every case depends on its facts and circumstances. There is one judgement passed by Madras High Court according to which pension was granted in service of 4 years and 240 days. The circumstances of leaving service is also to be considered and you are suggested to discuss with your advocate and send a legal notice to the company for the payment of gratuity and denied by the company, file the case for payment in the labour court.   

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

You should atleast complete four years 10 months and 11 days as a relaxation of 5 years lesser than this you will not be paid gratuity as it requires continuous service of above period as stated in Supreme court judgement surendra verma vs central govt industrial tribunal 1980

Prashant Nayak
Advocate, Mumbai
31949 Answers
179 Consultations

4.1 on 5.0

if an employee worked for 4 years and 8 months, the duration is considered as 5 years of continues service and he is eligible for gratuity.

an employee who has completed 4 years 8 months and 18 days continuously without any break is eligible for Gratuity under the Act.

Hence, any Employee in continuous service for 4 years & 240 days is eligible for Gratuity.

Section 2A of Payment of Gratuity Act, 1972 clearly defines “continuous service”.

Gratuity is provided to Employee who has rendered at least 5 years of continuous service in an organization.

However, In case, an employee not completing 5 years, he/she is still eligible for Gratuity provided they meet following condition.

Employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than;

(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.

Hence, any Employee in continuous service for 4 years & 240 days is eligible for Gratuity.

 

T Kalaiselvan
Advocate, Vellore
84914 Answers
2195 Consultations

5.0 on 5.0

if an employee completes 4 years and 6 months of continuous service in the same establishment, he is eligible to get gratuity as per the Payment of Gratuity Act 1972. you can file complaint before the labour commissioner and seek payment of gratuity. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Yes, if you have working days of 240 days in 5th year, you are entitle to gratuity.

If company refuse, approach labour court for releif.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22633 Answers
31 Consultations

4.4 on 5.0

1. you are eligible for the gratuity,

2. file an application to claim the gratuity to the authority under the payment of the gratuity act of the concerned area

Suneel Moudgil
Advocate, Panipat
2381 Answers
6 Consultations

4.8 on 5.0

1. Yes you are eligible for gratuity.

2. Payment of gratuity act is central government law. 

3. If you have completed 240 days from your fifth year of employment then you are eligible for gratuity.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Gratuity refers to an amount of money which an employer pays to his employee in return for services offered by him to the company. However, only those employees who have been employed in the company for five years or more than five years are given gratuity. You may perceive gratuity like gratitude expressed by the company towards their employees for their services. It is governed by the Payment of Gratuity Act 1972. A central government act.

The amount of gratuity can be calculated using the following formula

Gratuity = n*b*15/26

Where n = tenure of service completed in the company

b = last drawn basic salary + dearness allowance

Imagine that you worked with XYZ company for a period of 15 years. Your last drawn basic salary along with dearness allowance was Rs 30000. Hence, the amount of gratuity = 15*30000*15/26 = Rs 2,59,615.


It is to be rounded off to 5 years. You are eligible.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Hello,

you can approach the labour court.

regards

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

Dear Sir,

A person is eligible to receive gratuity only if he has completed minimum five years of service with an organisation. However, it can be paid before the completion of five years at the death of an employee or if he has become disabled due to accident or disease

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you have been worried about the inaction of the company even if you are eligible for the same.
  2. I would like to apprise you that yes, as per the law mentioned in the gratuity act and several judgments, you are eligible for the gratuity.
  3. And if your company doesn’t give so then you would always have the option to file a civil suit for the recovery of the amount as per law.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

5.0 on 5.0

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