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Thread Started by #priyashiva

Dear Malik sir, If company asks a supervisory level person to leave the services who has completed 3.5 yrs + can this person claim gratuity. regards :PS
19th March 2009 From India , Mumbai
Dear Mr. Malik, If a per son working with any organization last 6-7 years. he is applicable for gratuity. Please confirm. With Regards Dayal
10th January 2014 From India , Delhi
Dear

For your kind information i would like to share with you that Gratuity will payable to a person who has completed 4 year and 240 days not necessary to completion of 5 year

Under Payment of Gratuity Act 1972 sec. 4 Payment of Gratuity :-

(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,—

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not he necessary where the termination of the employment of any employee is due to death or disablement:

[Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.]

Explanation.— For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned:

Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account:

Provided further that in the case of [an employee who is employed in a seasonal establishment and who is not so employed through out the year], the employer shall pay the gratuity at the rate of seven days’ wages for each season.

Under Gratuity act 1972 Sec. 2A Continuous Services means a Person who has completed 240 days consider that one year & who has completed 180 days consider 6 month

Regards

Naveen Kumar
30th January 2014 From India, Delhi
Dear Priyashiva,
The Payment of Gratuity Act provides for the qualifying service for eligibility of gratuity as 5 years, all categories of employees are included. Therefore since the concerned person has not completed 5 years, he/she is not eligible for gratuity.
28th December 2015 From India , Pune
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