Eligibility of gratuity

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This query is : Resolved

Rakesh Kothari (Querist)

22 January 2015 Hi,

Can anyone let me know if I am eleigible to get gratuity under following circumstances.

Date of Joining - 12-07-2010
Last Workig Day after Resignation - 31-01-2015

I have a balance earlned leave of ~50 days. Will that be considered for the purpose of calulation of tenure of service for gratuity entitlement.

Could you also share with me the section of the act for reference purpose.

Regards,
Rakesh

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 January 2015 You are not eligible for gratuity as you have not completed 5 years service. EL will not be considered for tenure of service. Please refer gratuity act section 4 (1).
Please see the link.
https://www.business-standard.com/article/pf/what-is-gratuity-113050900105_1.html

https://www.slideshare.net/pratibhatrivedi/payment-of-gratuity-act-1972-17702327

Amol S Joglekar

Amol S Joglekar (Expert)

22 January 2015 No. The balance LEAVE can NOT be considered for the purposes of calculating the number of completed years service.

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Rakesh Kothari

Rakesh Kothari (Querist)

22 January 2015 Thanks Mr. Seetharaman for the response.

I still have a doubt in the matter.

Some of the consultants & also from online reviews it ssems that tenure is rounded off to the nearest whole number & then eligibility is checked.

I my case my tenure comes to 4 years 6 months 24 days. When rounded off it come to 5 years.

Please clarify.

Regards,

Rakesh

Amol S Joglekar

Amol S Joglekar (Expert)

22 January 2015 rounding off is done for CALCULATING the amount of gratuity and NOT the deciding the eligibility of gratuity

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Rakesh Kothari

Rakesh Kothari (Querist)

22 January 2015 Thanks Mr. Amol S. Joglekar

Amol S Joglekar

Amol S Joglekar (Expert)

22 January 2015 You are most welcome.
.
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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 January 2015 That is for calculation of gratuity. If you complete 5 years and 6 months service you are eligible for 6 years gratuity. But no gratuity for 4 years and 6 months.

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