| Dear all one person has worked in an Organisation for 4 yrs and nearly 9-10 month and resigned from the service. now he is claiming for gratuity stating " since i worked 4 yrs and 240 days continuous service in 5th yrs kindly settle my gratuity amount" in view of above whether he is entile for gratuity as per gratuity act 5 yrs service is required. regards Pramod dear pramod he is not entitle for gratuity because minimum five years of service is required to become eligible for gratuity.in one case madras high court has given judgement that if someone has completed 240 days in fifth year than he becomes eligible for gratuity,but it can not become a rule as there is no amendment in act.act will prevail the judgement. tks j s malik Dear Mr.Promod, 1. Under sec.4 (1), Gratuity shall be payable to an employee on the termination of his employment after he has rendered "continuous service" for not less than five years,-- 2.As Regards, the question of the 5th year of service, though the said employee had not completed one calendar year i.e. 12 months, where there is non-completion of 12 calender year, we have to rely upon( Sec. 2A (2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer-- (a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than-- (i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) two hundred and forty days, in any other case; The employee by virtue of having served 240 days in the 5th qualifying year therefore deemded to have completed 5 years of continuous ervice and hence Gratuity is payable. A.Irudayam Advocate and HR consultant +9199406 86632 dear pramod i donot feel that we should pay gratuity to an employee who has completed 240 days in fifth year.i too agree with friend mr irudayam who made the intrpretation on this basis only madras high court has given judgement.but there is no change in applicablity clause of the said act ,so on this basis only we can not pay gratuity. even some companies have insured gratuity through LIC and LIC also does not pay if service is less than 5 years. tks j s malik Working 240 days in the fifth year is sufficient to be eligible for gratuity. There is no need to refer to any case laws as Section 2A inserted by Act 26 of 1984 ( w.e.f. 11.2.1981) is very clear in this regard. Kindly go through Section 2A and Section 4(1). Section 4 (1) says about completion of "continuous service" of 5 years and S 2A defines what is meant by continuous service. Section 4 nowhere mentions that an employee has to complete "five Calendar years". KCS Kutty, Chennai
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