You are entitled for gratuity, as you have worked for 4 years and 230 days. An employee who has worked in a 5 days in a week company is entitled to gratuity if he has worked for 4 years and 180 days.
Gratuity after 4 year and 230 days
Hi, I have worked with a private organization for 2.5 years & then sent on deputation to another country. Now, I have resigned after 4 years and 230 days, and it is a 5 day work week company. Am I eligible for gratuity? Thanks Shubham
Asked 4 years ago in Labour
13 Answers
You are certainly eligible for gratuity. If you face any problem in receiving, you can complaint to Labour Court under Section 7 of Payment of Gratuity Act, 1972. Labor Court will issue a certificate of the Collector who can recover the dues as arrears of revenue.
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) ce, any Employee in continuous service for 4 years & 240 days is eligible for Gratuity.
- 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.
- And further , since completed year of service is basis continuous service, hence for the establishment which working is less than 6 days in a week , rule of 4 years 190 days will be applicable , and for the establishment working 6 days working rule of 240 would be applicable.
- Since, the IT firms operates only 5 days in a week , hence rule of 4 years 190 days will be applicable.
- Hence, you are entitled to get the same.
Dear sir,
Yes you are eligible for gratuity after working for 4 years and 180 days, as you work for a company that has a workweek of 5 days
Thank you
1. As per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity.
2. So, you have missed to be eligible to get gratuity by just 10 days.
The Parliament passed the Payment of Gratuity (Amendment) Bill. This will increase the limit amount to Rs.20 Lakh from the existing Rs.10 Lakh. This is applicable for central govt employees and also private sector employees (organized sectors).
Considering this new Payment of Gratuity (Amendment) Bill
if your company’s employee strength is more than 10 and if you completed a minimum of 5 years of continues service, then you are eligible for Gratuity.
How is the 5 years service calculated in Gratuity?
If an employee works below the ground (like mine), every year in which the employee works for more than 190 days in a year, is considered as 1 year. If the employee works above the ground, 240 working days in a year is taken as 1 year for gratuity calculation.
Hence, if the number of days worked in a year is less than the above-said working days, then such a year is ignored for Gratuity calculation.
For example, 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.
However, if the employee has worked for 4 years and 4 months, it is treated as less than 5 years and no gratuity will be payable to an employee.
Can you share the judgment of the court or official document(which para I should refer to), which mentions that I am eligible within 4 years & 180 days, my company says there is no decision on the same?
Asked 4 years ago
1. I am not aware of any such decision.
2. To my knowledge it is 4 years and 240 days of continuous service.
Could not find any such judgment
Jharkhand High Court
Ms Mmtc Mica Division Minerals And ... vs Sri Sajjan Kumar Bhudolia And Ors on 22 April, 2014
Learned counsel for the appellant contended that only if the employees proved that actually they have worked for 240 days, they can claim gratuity and that the employees have not adduced any evidence to show that they have worked for 240 days in the calendar year. In support of his contention, learned counsel placed reliance on the decision rendered in the case of Ranchi Legal Supports Centre and Ano. v. Chairman-cum-Managing Director, Central Coalfields Limited and Ors. (1987 PLJR 1056). Referring to the judgment of Hon'ble Supreme Court in the case of Lalappa Lingappa v. Laxmi Vishnu Textiles Mills (1981 (1) LLJ 308), in para 7 and 8 of the judgment, learned Single Judge of the Patna High Court held as under:-
8. On this reasoning, the Supreme Court held that even the permanent employees, who had remained absent without leave, and had actually worked for less than 240days in a year, were not entitled to gratuity. On the other hand, in the case of Badli employees who were employed only in case of absence of permanent employees, the gratuity was not found payable to them since they did not fulfill the conditions requiring that they should have worked for not less then 240 days in a year to qualify for gratuity. The test, therefore, is not whether the employee is described as permanent or temporary or whether he is paid daily or monthly wages. The test is whether he has actually worked for the number of days in a year as provided under the Act. If he was actually employed and had actually worked for not less than the specified number of days in a year, he will be entitled to payment of gratuity under the Ac
1. It's actually 4 years and 190 days and not 4 years and 180 days.
2. The Hon' ble Supreme Court had in its judgement in the case of Lalappa Lingappa V. Lakshmi Textile Mills, Sholapur (1981) and based on the above ruling the definition of "continuous service" has been amended. Hence you are entitled to gratuity as you have worked continuously for 4 years and 230 days.
You can contact the expert/advocate directly by contacting them using the contact details available in this forum, who suggested you the said law or about the judgment which is not maintainable to your situation.
Or you can search for the desired judgments from interet source.,
Dear Sir,
The section says that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee. So, 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.
https://www.zeebiz.com/personal-finance/news-gratuity-eligibility-and-calculation-are-you-eligible-even-with-less-than-5-yrs-spent-in-a-company-check-surprise-answer-119391#:~:text=The%20section%20says%20that%20for,pay%20gratuity%20to%20an%20employee.&text=So%2C%20if%20an%20employee%20completes,Payment%20of%20Gratuity%20Act%201972. Please use this link
Thank you
God Bless
- As per the judgment of the Supreme Court an employee is eligible for gratuity if he has completed 4 years of continuous service and 240 days continuous working in 5th year. On the day when he completes his 240 days in the 5th year he will be eligible for gratuity.
- Since, the IT firms operates only 5 days in a week , hence rule of 4 years 190 days will be applicable.