• Am I eligible for gratuity

Hello Sir,

I am working as a Manager in Public Sector Bank, I was suspended from duties for 2 months as I was taken into remand. The arrest was due to case filed by my wife under sec 498a and others. I am working in the bank for the last 6 years. I worked for exactly 4 years before suspension and 2 years after suspension. I was paid with Subsistence allowance during suspension. I am now planning to resign my job. Whether I am eligible for gratuity under these circumstances. Thank You
Asked 12 months ago in Labour

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17 Answers

You need to work for minimum 4 years and 6 months continuously in an organization for getting the gratuity. But you got suspended after 4 years so continuity broke.

Advised to file specific performance suit against the bank for getting gratuity if denied.

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Yes as you worked for 5 years you are eligible

Prashant Nayak
Advocate, Mumbai
24215 Answers
51 Consultations

4.4 on 5.0

Yes you are eligible for gratuity because you were still getting payment in the suspension period.

Ganesh Kadam
Advocate, Pune
12192 Answers
151 Consultations

4.9 on 5.0

If your resignation shall be accepted by the management then you would become eligible for gratuity payment.

To be eligible, an employee has to render his/her services for 5 continuous years.

The 5 years of continuous service also include interruptions caused by strike, lockout, accident, leaves, layoff, absence from duty without leave, and termination of service not on the part of an employee.


T Kalaiselvan
Advocate, Vellore
74146 Answers
1202 Consultations

5.0 on 5.0

If you have worked continuously for 4 years and 190 days in an organisation, which works for 5 days' in a week, then you will be entitled for gratuity. Were you convicted for the offence?.If you were not convicted for the offence, then your suspension period will also be counted as continuous service.

Shashidhar S. Sastry
Advocate, Bangalore
3770 Answers
225 Consultations

5.0 on 5.0

Yes, you are.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

the period of suspension is to be considered for the purpose of Gratuity calculation. 

you should be eligible for gratuity 

Ajay Sethi
Advocate, Mumbai
84049 Answers
5477 Consultations

5.0 on 5.0


1) In case of bank employees who were suspended on account of them facing criminal charges (498a / other offences under IPC), their benefits get restored only in case they are acquitted when the court finds that the case against him is false.

2) Benefits include regularisation of services by way of annulling the suspension proceedings in toto after acquittal of an employee by the court. 

3) So, in case , you have been acquitted by the court, you are eligible to claim full gratuity for 6 years and other benefits such as P.F etc.

4) In case the case is still pending in the court, bank is not liable to pay any benefits including gratuity and Provident fund. 

You may refer to judgment of Kerala High court in Union Of India (Uoi), ... vs T.P. Gopinath, wherein courts have opined as above. 

Hope this information is useful. 

Rajgopalan Sripathi
Advocate, Hyderabad
2119 Answers
394 Consultations

5.0 on 5.0

If you have completed your 20 year in the service of Public Sector Bank continuously then you are eligible otherwise NO.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

 An employee is eligible to receive gratuity, only if he has completed minimum five years of service with an establishment.

- Further , as per Madras High Court, the gratuity of an employee who completes 4 years and 240 days of service  is eligible for gratuity.

- Further, as per Section 2A(1) , an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave. 

- And further, Section 4(2) of the Payment of Gratuity Act provides that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee for the whole year. That means if an employee works in the establishment for more than 6 months in a year, he shall be eligible to get gratuity , if the employee has had continuous service of 190 / 240 days.

- hence, you are eligible for gratuity . 

Mohammed Shahzad
Advocate, Delhi
7971 Answers
85 Consultations

5.0 on 5.0

Yes. You are eligible for gratuity, if you are not convicted for the said offence. 

Also, as your pet during your suspension, you are eligible for gratuity.

Siddharth Jain
Advocate, New Delhi
5759 Answers
83 Consultations

5.0 on 5.0

There is a formula using which the amount of gratuity payable is calculated. The formula is based on 15 days of last drawn salary for each completed year of service or part of thereof in excess of six months.

The formula is as follows:
(15 X last drawn salary X tenure of working) divided by 26

Here, last drawn salary means basic salary, dearness allowance.

Yes you are eligible.

A person is eligible to receive gratuity only if he has completed minimum five years of service with an organisation. 

Rahul Mishra
Advocate, Lucknow
13045 Answers
42 Consultations

5.0 on 5.0

Yes you are. Suspension period will not count to calculate 5 years. And 2 years are in continuous service.

Yogendra Singh Rajawat
Advocate, Jaipur
21439 Answers
31 Consultations

4.4 on 5.0

According to Payment of Gratuity Act, 1972 & Rules, an employee is eligible for getting gratuity after the completion of five continuous years in an organization.. 

Mohammed Mujeeb
Advocate, Hyderabad
19011 Answers
28 Consultations

4.5 on 5.0

Yes, you are eligible for gratuity. If you have served for 5 years or more in continuity, then you are entitle for gratuity. But in case, if after suspension, you have a kind of rejoined as a new employee and is not in continuance of your old employment, then there are chances that they may not give your gratuity for the services rendered. As in that scenario your employment shall be of 4 years and 2 years, separately. But otherwise, interruptions because of suspension, strike, lockout, pay leave or sick leaves, etc are part of your employment. 

Vivek Tanwar
Advocate, Gurgaon
6 Answers

5.0 on 5.0

Dear Sir/Madam,

You are suggested that you will be eligible for gratuity under the existing law. 

Ganesh Singh
Advocate, New Delhi
6629 Answers
16 Consultations

4.5 on 5.0

Yes you will be eligible for gratuity.

Mohit Kapoor
Advocate, Rohtak
10688 Answers
7 Consultations

5.0 on 5.0

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