Report Wire - Will I be eligible for gratuity in 4 years and seven months?

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Will I be eligible for gratuity in 4 years and seven months?

2 min read
The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to employees. (Photo: Mint)

Q) Could you please let me know, would I be eligible for the gratuity in 4 years 7 months? I work 5 days per week. – Kshitija

(Query answered by Suresh Surana, Founder, RSM India)

Section 4(1) of The Payment of Gratuity Act, 1971 offers that gratuity shall be payable to an worker on the termination of his employment after he has rendered steady service for not lower than 5 years within the following instances:

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his demise or disablement as a result of accident or illness:

However, the situation of completion of steady service of 5 years shall not be crucial the place the termination of the employment of any worker is because of demise or disablement. Herein, “completed year of service” would imply steady service for 1 12 months and an worker shall be stated to be in steady service for a interval if he has been in uninterrupted service, together with service which can be interrupted on account of illness, accident, go away, absence from responsibility with out go away, lay off, strike or a lock-out or cessation of labor not as a result of any fault of the worker.

Further, it’s to be famous that the Madras High Court within the case of Salem textile case (2011) had dominated that an worker could be eligible for gratuity even when he has accomplished 4 years 240 days.

You may test with the HR workforce of your organization on the eligibility to assert gratuity based mostly on the provisions of the regulation mentioned and in addition the judgement of the Madras High Court.

(Send queries to mintmoney@livemint.com)

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