Hi Seniors,
I need a guidance from you people regarding Gratutity Elgibility. I know an employee will get it after completion of continuous 5 years of service. But what about if he/she left just before completion of 5 years, say he/she work only for 4 year and 10 months. In my Org. we are paying gratuity to those employees also who are leaving after completing 4 years and 8 months of service. Is it ok?
I hope you will clarify my query.
Regards
Ravi
From India, Ghaziabad
1I need a guidance from you people regarding Gratutity Elgibility. I know an employee will get it after completion of continuous 5 years of service. But what about if he/she left just before completion of 5 years, say he/she work only for 4 year and 10 months. In my Org. we are paying gratuity to those employees also who are leaving after completing 4 years and 8 months of service. Is it ok?
I hope you will clarify my query.
Regards
Ravi
From India, Ghaziabad
Hello Ravi,
The gratuity eligibility service as per Gratuity Act 1972 is 5 years.
But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service.
From India, Chandigarh
The gratuity eligibility service as per Gratuity Act 1972 is 5 years.
But as per the judgment from Supreme Court below and the quotation from the book quoted below it seems that the gratuity eligibility service is 4 years 240 days.
"Judgment from Supreme Court:
"Yes, by virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service.
From India, Chandigarh
Dear Sir,
Thanks for valuable suggestion.
So on the basis of the judgement Any one whose works for 240 days or more in his/her 5th year is eligible for the Gratuity. So we are following a right practice.
Thanks and Regards,
Ravi
From India, Ghaziabad
Thanks for valuable suggestion.
So on the basis of the judgement Any one whose works for 240 days or more in his/her 5th year is eligible for the Gratuity. So we are following a right practice.
Thanks and Regards,
Ravi
From India, Ghaziabad
The above judgement is not under gratuity Act but under I'D Act.There is no Supreme Court judgment on the subject in query. Some HC judgements are there. But they are applicable in their jurisdiction only.
Varghese Mathew. 8547139493
From India, Thiruvananthapuram
Varghese Mathew. 8547139493
From India, Thiruvananthapuram
The above referred judgement is not under Gratuity Act.Instead it is on one year continuous service for retrenchment under ID Act. some High courts have decided that 240 working days in fifth year is enough to constitute five years continuous service,but they are applicable only in their jurisdiction.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
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Hello Seniors.doc
Inner Guidance Book.zip