Dear All,
While computing qualifying service period of an employee for the purpose of gratuity, period over and above 6 months is to be rounded off to the next full year. Thus, 4 years and 10 months period round off to five years and the employee rendering service is eligible for gratuity. Thanks and regards.
From India, Pune
22While computing qualifying service period of an employee for the purpose of gratuity, period over and above 6 months is to be rounded off to the next full year. Thus, 4 years and 10 months period round off to five years and the employee rendering service is eligible for gratuity. Thanks and regards.
From India, Pune
No in the case given by you the Employee is niot entitled for gratuity because the Min.qualifying period for entitlement to gratuity is 5 years or more of uninteruptted service(section4(a). Secondly section2(a) also needs to be read for contineous service. Only if the employee is fulfilling the basic qualifying conditions for gratuity, he will be entlted otherwise not.
IF you have in your mind the sentence" For every completed year of service or part thereof in excess of six months," This is provided in section2(b) and this provision is applicable for the subsequent period, once the employee fulfils the qualifying period.
regards
From India, Nagpur
IF you have in your mind the sentence" For every completed year of service or part thereof in excess of six months," This is provided in section2(b) and this provision is applicable for the subsequent period, once the employee fulfils the qualifying period.
regards
From India, Nagpur
As per Payment of Gratuity Act, 1972, Section: 4(3): The amount of gratuity payable to an employee shall not exceed three lacs and fifty thousand rupees. But Gratuity Ammendment Act, 2010 (Gratuity Calculation and Payment), the Gratuity limit has been raised from 3.5 lacs to 10 lacs.
As per Payment of Gratuity Act, 1972, Section: 2A: If the employee during the period of twelve calendar months has actually worked under the employer for not less than –
(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) Two hundred and forty days, in any other case;
Section 7 of the Payment of Gratuity Act, 1972 provides for the determination of the amount of gratuity. Under sub-Section (1), an eligible employee under the said Act has to make a written application, while sub-Section (2) makes it binding on the employer to determine the amount of gratuity and specify the same to the controlling authority, even if such application is not made. The mandate of sub-Section (3) is to make the payment of gratuity within 30 days of the date, it becomes payable to such eligible employee. Section 3A provides for the interest, where gratuity is not paid within the prescribed period.
In your case if said employee worked more than 240 days in the 5th year than he is eligible for gratuity payment subject to uninterrupted service, he shall be deemed to be in continuous service.
Some important Supreme Court cases relating to this issue are:
(i) Grand Kakatiya Sheraton ... vs Srinivasa Resorts Ltd. & Ors. on 27 February, 2009
(ii) Bakshish Singh Vs. Darshan Engineering Works & Ors
(iii) M/s. British Paints (India) Ltd. Vs. Its Workmen reported in 1966 (2) SCR 523 and
(iv) Straw Board Manufacturing Co. Ltd. Vs. Its Workmen reported in 1977 (2) SCC 329.
Regards.
Zahid Khan
Corporate Legal Consultant
09322433395
From India, Ahmadabad
As per Payment of Gratuity Act, 1972, Section: 2A: If the employee during the period of twelve calendar months has actually worked under the employer for not less than –
(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) Two hundred and forty days, in any other case;
Section 7 of the Payment of Gratuity Act, 1972 provides for the determination of the amount of gratuity. Under sub-Section (1), an eligible employee under the said Act has to make a written application, while sub-Section (2) makes it binding on the employer to determine the amount of gratuity and specify the same to the controlling authority, even if such application is not made. The mandate of sub-Section (3) is to make the payment of gratuity within 30 days of the date, it becomes payable to such eligible employee. Section 3A provides for the interest, where gratuity is not paid within the prescribed period.
In your case if said employee worked more than 240 days in the 5th year than he is eligible for gratuity payment subject to uninterrupted service, he shall be deemed to be in continuous service.
Some important Supreme Court cases relating to this issue are:
(i) Grand Kakatiya Sheraton ... vs Srinivasa Resorts Ltd. & Ors. on 27 February, 2009
(ii) Bakshish Singh Vs. Darshan Engineering Works & Ors
(iii) M/s. British Paints (India) Ltd. Vs. Its Workmen reported in 1966 (2) SCR 523 and
(iv) Straw Board Manufacturing Co. Ltd. Vs. Its Workmen reported in 1977 (2) SCC 329.
Regards.
Zahid Khan
Corporate Legal Consultant
09322433395
From India, Ahmadabad
Dear All,
If an employee resigns just 2 months before 5 years ( say he has not worked for 240 days) but he works for another 3 months as notice period, will he be eligible for gratuity and super annuation. What would be the criteria for these benefits.--the date of resignation or the final day of working?
From India, Madras
If an employee resigns just 2 months before 5 years ( say he has not worked for 240 days) but he works for another 3 months as notice period, will he be eligible for gratuity and super annuation. What would be the criteria for these benefits.--the date of resignation or the final day of working?
From India, Madras
Dear Ajay,
Last working day is the criteria for compution of gratuity, not the date of notice. Qualifying service would be counted till the last day of working Superannuation is different. It is reaching the age of retirement, either 58 or 60 years of age.
From India, Pune
Last working day is the criteria for compution of gratuity, not the date of notice. Qualifying service would be counted till the last day of working Superannuation is different. It is reaching the age of retirement, either 58 or 60 years of age.
From India, Pune
Thanks a lot for the clarification Regarding superannuation ,my app.letter states like this " c).Benefits of the scheme will be available to an employee only on his completing a minimum continuous service of 5 years with the Company "
can I be able to withdraw after 5 years or opt for availing the benefit on my retiring age ? is the rule of 240 days on the fifth year apply here for eligibility?
sorry if i am adiverting from the forum topic
regards
Ajay
From India, Madras
can I be able to withdraw after 5 years or opt for availing the benefit on my retiring age ? is the rule of 240 days on the fifth year apply here for eligibility?
sorry if i am adiverting from the forum topic
regards
Ajay
From India, Madras
Dear Shri Ajay Ji,
Please let me know the dates of your appoinment and the date of relief (last day of working) and also your last pay (basic plus dearness allowance if any) and I will tell you the amount of gratuity you are eligible. You please file claim for payment of this gratuity and in due course you will receive it from your former employer. In case of delay beyond 30 days from the date of filing your claim, you are also eligible for simple interest on the amount of gratuity. The notice period served and actually spent on duty is also eligible for terminal benefits. It is part of your services in that firm. If you have taken up assignment elsewhere, you may get your provident fund transferred to the new employer. With PF, your pension account would also be transferred to the new EPFO office. Regards,
From India, Pune
Please let me know the dates of your appoinment and the date of relief (last day of working) and also your last pay (basic plus dearness allowance if any) and I will tell you the amount of gratuity you are eligible. You please file claim for payment of this gratuity and in due course you will receive it from your former employer. In case of delay beyond 30 days from the date of filing your claim, you are also eligible for simple interest on the amount of gratuity. The notice period served and actually spent on duty is also eligible for terminal benefits. It is part of your services in that firm. If you have taken up assignment elsewhere, you may get your provident fund transferred to the new employer. With PF, your pension account would also be transferred to the new EPFO office. Regards,
From India, Pune
Dear Seniors
The court judgement says person should worked 240 days in fifth years. If company works for 5 days weeks e.g.
304 Days in year (Jan to Oct)
96 Sat & Sun (Weekly off)(Jan to Oct)
----
208
22 Holiday-10 + CL-6 + SL-6 + PL-(15 Not used)
----
186 Actual working days in 10 months of 5th years.
Person completed 4years and 10 months in fifth years than Gratuity payable in above case.
Please revert.
Ashok More
From India, Ahmadabad
The court judgement says person should worked 240 days in fifth years. If company works for 5 days weeks e.g.
304 Days in year (Jan to Oct)
96 Sat & Sun (Weekly off)(Jan to Oct)
----
208
22 Holiday-10 + CL-6 + SL-6 + PL-(15 Not used)
----
186 Actual working days in 10 months of 5th years.
Person completed 4years and 10 months in fifth years than Gratuity payable in above case.
Please revert.
Ashok More
From India, Ahmadabad
Dear Mr. Satish, Please find attached the Judgement of Madras High court in this regarad, Anil Fernandes
From India, Bangalore
From India, Bangalore
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx