• Query on gratuity eligibility

Hi, 
I am working for an IT company in Pune for over 4 years now. 
Recently my company announced to make my position redundant from Apr 2016. 
So I have to leave the organization during my 5th year of service before completing (4 yrs and 190 days) for normal gratuity eligibility. 

My query is whether I would still be eligible for gratuity payments as I am in 5th year of service(Say 4 yrs 100 days total as of my last day) in the scenario when company is doing permanent lay-off ? 

Thanks, Deepak
Asked 8 years ago in Labour

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3 Answers

Hi

since you have completed 4 years and 180 days (company follows a five day working schedule) is ekigibile.

As per section 4 of Payment of Gratuity Act, 1972, one has to complete 5 years of service. The calculation is , the employee who has worked for 240 days in a year, is treated as one year. this also means that 4 years and 240 days , Since the employee has completed four years and 240 days, he/she will be eligible for gratuity as it is treated as five years service.

sec 2A, of the act says , the service shall still be deemed to be uninterrupted service.In such case number of days need not be counted.However if the service is interrupted for any reason(other than reasons in sec. 2A), then one has to count days and if days worked in any year is equal to or more than 240 days,then it shall be considered as one year continuous service.

For example if an employee renders four years uninterrupted service and if the service is interrupted in fifth year,then if he has actually worked for equal or more than 240 days in fifth year,it shall be deemed that he has completed 5 years continuous service.

you should file a petition with the Asst.Commissioner of Labour of your area claiming Gratuity

Thresiamma G. Mathew
Advocate, Mumbai
1642 Answers
212 Consultations

5.0 on 5.0

1) gratuity is applicable to a permanent employee who completes 5 years of continuous service with the organisation. The pre requisite of completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

2) in your case you would have completed 4 years 100 days on your last date of employment with the organisation

3)any person completes 4 years 240 days service in the Organisation are also eligible to get gratuity benefit against to layoff, leave with wages, sick leave etc.,

4) you would not be eligible for gratuity

Ajay Sethi
Advocate, Mumbai
94731 Answers
7536 Consultations

5.0 on 5.0

The Gratuity is only payable after 5 years on the latest Amount of Basic and DA.You are not eligible for gratuity since you have not completed 5 years.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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