Hi Members, Is a person eligible for Gratuity after completing 4 years and 183 days of continuous service in one company?
I did my research and found mixed answers. Some say eligible and some say not eligible. The company says not eligible. The company says that a person has to serve 4 years and 240 days to be eligible for gratuity. As per the Gratuity act is the person authorized for gratuity payment with 4 years and 183 days of continuous service?
Please advise.
I did my research and found mixed answers. Some say eligible and some say not eligible. The company says not eligible. The company says that a person has to serve 4 years and 240 days to be eligible for gratuity. As per the Gratuity act is the person authorized for gratuity payment with 4 years and 183 days of continuous service?
Please advise.
What you have mentioned in the 2nd para of your post is correct.
A person has to complete 4 years of continuous service and on 5th year, he has to complete
240 days of working (including weekly off, his paid leave period, company's paid holidays etc)
to become eligible for gratuity payment
From India, Aizawl
625A person has to complete 4 years of continuous service and on 5th year, he has to complete
240 days of working (including weekly off, his paid leave period, company's paid holidays etc)
to become eligible for gratuity payment
From India, Aizawl
Thanks for the response P Radhakrishnan Nair. What happens to the gratuity amount which the part of my CTC at a private IT firm? When I was given the offer the gratuity amount was shown as part of the CTC. I will not get that because I am not fulfilling my eligibility criteria or is there a way to get that amount because it was shown as a part of my CTC.
Also, I came across this article - you think its true - https://www.zeebiz.com/personal-fina...-answer-119391
Do let me know.
Thanks and Regards,
John
Also, I came across this article - you think its true - https://www.zeebiz.com/personal-fina...-answer-119391
Do let me know.
Thanks and Regards,
John
Hi John,
As Mr.Rkn indicated eligibility to gratuity payment gains only after an employee put in 4y+240days of 'continuous service' criteria. There is also a view for the purpose of arriving at completion of one year of service 6 months can be rounded of to one year. But there are no takers/ instances anybody accepting this view. Whereas 'CTC' and gratutiy said to be part of it again not legally acceptable service condition so far in our country for this purpose. Therefore 240 days of service in the 5th year holds good as on date. Your pointer on CTC was discussed in other pages of this forum many a time, to see them you can use 'search topic/file' box above.
From India, Bangalore
As Mr.Rkn indicated eligibility to gratuity payment gains only after an employee put in 4y+240days of 'continuous service' criteria. There is also a view for the purpose of arriving at completion of one year of service 6 months can be rounded of to one year. But there are no takers/ instances anybody accepting this view. Whereas 'CTC' and gratutiy said to be part of it again not legally acceptable service condition so far in our country for this purpose. Therefore 240 days of service in the 5th year holds good as on date. Your pointer on CTC was discussed in other pages of this forum many a time, to see them you can use 'search topic/file' box above.
From India, Bangalore
Thanks Kumar.
Couple of days ago there was news concerning labor reforms concerning the Gratuity law.
https://trak.in/tags/business/2020/0...labor-reforms/
The reform states that the current 5 years will be reduced to a lower figure.
If the reform comes into action then can employees go back to their past employers and claim gratuity if they meet the period criteria of the reform? Like in my case will I be able to go back to my employer and ask for my gratuity once the gratuity reform is passed.
Thanks,
John
Couple of days ago there was news concerning labor reforms concerning the Gratuity law.
https://trak.in/tags/business/2020/0...labor-reforms/
The reform states that the current 5 years will be reduced to a lower figure.
If the reform comes into action then can employees go back to their past employers and claim gratuity if they meet the period criteria of the reform? Like in my case will I be able to go back to my employer and ask for my gratuity once the gratuity reform is passed.
Thanks,
John
Dear John,
Much remains as only talks. Unless it takes shape of a law/amendment to existing provisions, the present stipulation only will be continued.
Any amendments, as we discussed, if and when introduced only will tell us who are going to be the beneficiaries. At this point of time we can't speculate on this aspect whether the amendments going to be w.e.f.prospective date or retrospective date. Lots of if's and but's. You'll be one of the luckiest persons on earth if it's implemented with retrospective effect, to be frank. The only option, pl.keep praying.
From India, Bangalore
Much remains as only talks. Unless it takes shape of a law/amendment to existing provisions, the present stipulation only will be continued.
Any amendments, as we discussed, if and when introduced only will tell us who are going to be the beneficiaries. At this point of time we can't speculate on this aspect whether the amendments going to be w.e.f.prospective date or retrospective date. Lots of if's and but's. You'll be one of the luckiest persons on earth if it's implemented with retrospective effect, to be frank. The only option, pl.keep praying.
From India, Bangalore
John,
I am also giving a link where you will find many discussions on the subject and opinions/'views of our learned experts on this matter.
https://www.citehr.com/260004-gratui...ce-period.html
From India, Aizawl
I am also giving a link where you will find many discussions on the subject and opinions/'views of our learned experts on this matter.
https://www.citehr.com/260004-gratui...ce-period.html
From India, Aizawl
Thanks for your response Kumar. Lets wait and hope its applicable in the retrospective manner also. Cheers! Have a great weekend. Stay safe. Regards, John
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Less than 5 years service - Eligibility for payment of gratuity.pdf