If an employee leaves an organisation after completing 4.8 years of service, is he eligible for gratuity? Vidya
From India, Delhi
From India, Delhi
Eligibility of gratuity is, if a person worked for any organisation with 4 year completed + 240 days ( in fifth year) is entitled for gratuity Regards Rathish.R
From India, Madras
From India, Madras
Dear Vidya YES, accordingly to the judgement passed by Hon’ble Madras High Court, if an employee leaves an organisation after completing 4.8 years of service, he eligible for gratuity.
From India, Gurgaon
16From India, Gurgaon
But based on the said judgement (Mettur Beardsell Ltd, madras Vs Regional Labour Commissioner) the Payment of Gratuity Act has not been amended. Therefore, the entitlement for gratuity remains the same, ie, 5 years continuous service. The verdict in Madras High Court can not be made applicable to all states. The Andra Pradesh High Court has held in P Raghavalu & Sons Vs. Addl. Labour Court that a service of 4 years 11 months and 10 days will not make an employee entitled to gratuity. Similar cases have also been reported in various other states also. Therefore, unless an amendment is made as to make the employee eligible to gratuity treating his 240 days of service in the fifth year as one year it is difficult to decide on it. However, considering the payment as a social welfare payment a liberal interpretation shall be made by the employer.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
i agree with madhu sir..the ammendment is nt yet done..we are having this confusion more often now..Its still 5 continuous year completion..
From India, Calcutta
From India, Calcutta
What should be the stitutation in case if employee whose age is 30 years & dies due to any accidient out side factory premises & length of services is less then five years.
Is he eligible under the act to get gratuity & for how many years.
From India, Daman
Is he eligible under the act to get gratuity & for how many years.
From India, Daman
continuous service of five years is not necessary where the termination of employment of any employee is due to death or disablement due to an accident or disease.
For death cases, gratuity is known to be payable to the lnominees of the deceased employee for every completed year of service or part thereof in excess of six months at the stipulated rate of 15 days' wages based on rates of wages last drawn by him ; 240/120 days of continuous service uand 190/95 days for a mine being a qualifier. 120 and 95 days are applicable to working "in excess of six months or part thereof".
it is immaterial whether an employee has worked for 22 days or more in a month. Gratuity will be calculated as if an employee is working for 26 days in a month.
Any Employee, once they joined for the company, and during their service accidentally death happened for the service period, they are eligible for only years they served in the company like here it may ne 3years or 4years as per the Gratuity act. .
hope it clears your doubt.
From India, Calcutta
For death cases, gratuity is known to be payable to the lnominees of the deceased employee for every completed year of service or part thereof in excess of six months at the stipulated rate of 15 days' wages based on rates of wages last drawn by him ; 240/120 days of continuous service uand 190/95 days for a mine being a qualifier. 120 and 95 days are applicable to working "in excess of six months or part thereof".
it is immaterial whether an employee has worked for 22 days or more in a month. Gratuity will be calculated as if an employee is working for 26 days in a month.
Any Employee, once they joined for the company, and during their service accidentally death happened for the service period, they are eligible for only years they served in the company like here it may ne 3years or 4years as per the Gratuity act. .
hope it clears your doubt.
From India, Calcutta
Some HR prof. are in imprestion that in death case of employee, employer need to pay statutorly for full no. of years up to the retirement age. e.g If employee age is 30 years & say he has complited 3 yrs of services with company in that case company needs to pay gratuity for 3 years or for 28 years. [ what does the act say].
From India, Daman
From India, Daman
How will we calculate the amount?? Formula for gratuity calculation: Basic*15/26* no. of years e.g. : Basic = Rs. 10,000/- No. of years = 15 years Gratuity = 10,000*15/26*5 = Rs. 28,846.15/-
From India, Calcutta
From India, Calcutta
Let me come to Udya.desai. In death cases the employer's responsibility is to pay gratuity according to the deceased employee's service only. But at the same time, normally the payment of Gratuity will be linked with Life Insurance Corporation's Gratuity Plan in which there exists an insurance cover which guarantees gratuity till the date of superannuation in case of death. For example, if the age of superannuation is 60 years and an employee dies (it is immaterial if the death happens while on duty) at the age of 30 after completing, say, 3 years of service, , then his gratuity will be service gratuity which will be equal to 15 days pay for every year of service plus a sum calculated based on his age and the age of superannuation and that will be discharged by the LIC.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc