Gratuity

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2017 Dear Experts,

Please suggest I am eligible for Gratuity as i have completed my services as 4years 3month 11 days.

please share act if any one have.

Regards
Maan Singh

Expert : Anonymous

Expert : Anonymous (Expert)

08 March 2017 to be eligible for gratuity you need to work for minimum 5 years.... but if you served for 4 years and 240 days... you will be eligible for gratuity....

CA Gopal Somani

CA Gopal Somani (Expert)

09 March 2017 As per Section 4 of the Payment of Gratuity Act, 1972 provides that an employee will be entititled to gratuity on completion of continuous service of 5 years and while clarifying the 5 years complete service, Andhra Pradesh High Court had held that the minumum period for becoming eligible for payment of gratuity should not be less than 5 years. It was further clarified that the words 'or' part in excess of six months' are only meant for the purposes of computation of gratuity for the subsequent year or years to first complete 5 years. It was also held that if an employee has worked for 4 years 11 months and 10 days, he will not be eligible for gratuity for want of completion of 5 years.

Further in a subsequent case, Madras High Court while relying upon the clarification by the Supreme Court pertaining to 240 working days in one year will be deemed to be continuous service of one year, meaning thereby that there should not be complete 12 calendar months' service.

So at least 4 years and 240 days are required to be eligible for Gratuity.

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