eligibility for Gratuity

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Suresh (Querist)
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27 July 2010 Hi, Under The Payment of Gratuity Act, 1972 what is the eligibility criteria to claim gratuity from a Company. I know it is after first 5 years, but my query is whether service of 4 yrs 6 months and above could be considered for payment of Gratuity?

srinath

srinath (Expert)
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27 July 2010 ya half year completed would be taken as full year. so 4 years 6 months and one day would do

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 July 2010 Rounding off of fraction of an year to a completed year is only for the purpose of calculating eligibilty. But for payment of gratuity 5 years tenure has to be counted with out the rouding off method. Courts have repeatedly said that in the case of fraction of an year to be converted to a completed year, the employee must have worked not less than 240 days in that fraction year. In other words an employee who is in continues service of not less than 4 years 8 months and 5 days will only get the benefit of the Payment of Gratuity Act,1972.

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