Hi,
I have worked in an organisation for 4 years & 9 1/2 months. My company has asked me to leave due to economic reasons. I want to know if i am eligible to get gratuity as i am not leaving rather my company is asking me to leave.
ps advice.
Thanks & Regards,
Vikram.
From United States, Greensboro
I have worked in an organisation for 4 years & 9 1/2 months. My company has asked me to leave due to economic reasons. I want to know if i am eligible to get gratuity as i am not leaving rather my company is asking me to leave.
ps advice.
Thanks & Regards,
Vikram.
From United States, Greensboro
Thanks so much for your answers. It would also be very helpful for me to understand what my entitlements are in this case. To date my company has assured me the following :
1. 2 months wages as compensation ( 8 days notice is given to me )
2. Leave balance encashment
I want to know what else in addition to the above am i entitled to.
1. Its quite clear now that gratuity i am entitled for.
kindly guide me as to what else my entitlements are.
I was given to understand from other sources that i am entitled to the following also in addition to the above 3.
a. Performance bonus for year 2009-10 ( my appraisal ratings were good 4 on 5 )
b. 15 days wages for every completed year of service - in this case 5 years
ps advice if the above 2 are also part of my entitlements.
Thanks for your help.
Vikram.
From United States, Greensboro
1. 2 months wages as compensation ( 8 days notice is given to me )
2. Leave balance encashment
I want to know what else in addition to the above am i entitled to.
1. Its quite clear now that gratuity i am entitled for.
kindly guide me as to what else my entitlements are.
I was given to understand from other sources that i am entitled to the following also in addition to the above 3.
a. Performance bonus for year 2009-10 ( my appraisal ratings were good 4 on 5 )
b. 15 days wages for every completed year of service - in this case 5 years
ps advice if the above 2 are also part of my entitlements.
Thanks for your help.
Vikram.
From United States, Greensboro
Hi Vikram...
Its not at all appreciable to know that the organisation asks an employee to leave after serving for 4 years but due to the current scenarios one cant help..
I would like to comment on the post - eligibility of Gratuity.
As per my understanding, till date; According to Payment of Gratuity Act, 1972 & Rules, an employee is eligible for getting gratuity on completion of 5 years in a org; wherein 240 working days make an year.
I am sorry to disappoint you on this.
Wish you all the luck for your future endeavors!
PS: Plz correct me members if I am wrong on the same.
Regards,
Shraddha
From India, Pune
5Its not at all appreciable to know that the organisation asks an employee to leave after serving for 4 years but due to the current scenarios one cant help..
I would like to comment on the post - eligibility of Gratuity.
As per my understanding, till date; According to Payment of Gratuity Act, 1972 & Rules, an employee is eligible for getting gratuity on completion of 5 years in a org; wherein 240 working days make an year.
I am sorry to disappoint you on this.
Wish you all the luck for your future endeavors!
PS: Plz correct me members if I am wrong on the same.
Regards,
Shraddha
From India, Pune
Dear Mr. Dixith,
Thanks for the clarification.
Noted that as per Sec.25-F., ID Act, 1947, for termination of services of any employee the employer has to pay retrenchment compensation such as 15 days wages for each completed year of service.
Please also advice me if i can ask for :
1. Performance bonus
My company has indicated to me that i am not eligible for gratuity inspite of me completing 4 years & 9 months of continued service.
ps advice if i can take legal action...
Thanks & Regards,
Vikram.
Thanks..
From United States, Greensboro
Thanks for the clarification.
Noted that as per Sec.25-F., ID Act, 1947, for termination of services of any employee the employer has to pay retrenchment compensation such as 15 days wages for each completed year of service.
Please also advice me if i can ask for :
1. Performance bonus
My company has indicated to me that i am not eligible for gratuity inspite of me completing 4 years & 9 months of continued service.
ps advice if i can take legal action...
Thanks & Regards,
Vikram.
Thanks..
From United States, Greensboro
For termination/ retrenchment compensation as provided in the ID Act, you have to be a workman as defined under the Act. If you had been working under managerial or supervisory capacity, you will not come under the ID Act and if so, your termination clause as detailed in your appointment order will decide whether you are eligible for retrenchment compensation and what shall be the amount of compensation payable to you.
As far as gratuity is concerned, there is a Hight Court judgement (I had posted the verdict earlier also) which rules that an employee who had served for four years and 240 days in the fifth year shall be entitled to gratuity. Following that judgement you may be entitled to gratuity.
If performance bonus is a part of your benefits or so called CTC, then you will get it. You can demand it saying that the same is a 'deferred wages'. Similarly, you can claim encashment of leave also.
Regards,
Madhu.T.K
From India, Kannur
As far as gratuity is concerned, there is a Hight Court judgement (I had posted the verdict earlier also) which rules that an employee who had served for four years and 240 days in the fifth year shall be entitled to gratuity. Following that judgement you may be entitled to gratuity.
If performance bonus is a part of your benefits or so called CTC, then you will get it. You can demand it saying that the same is a 'deferred wages'. Similarly, you can claim encashment of leave also.
Regards,
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.
Doctors on Part Time payment-Gratuit y eligibility- Gujarat High Court.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf
Payment of Gratuity Act, 1972 & The Rules.ppt