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Will I be eligible for gratuity in 4 years and 7 months?


Q) Could you be sure to permit me know, would I be qualified for the gratuity in 4 a long time 7 months? I function 5 times a week. – Kshitija

(Question answered by Suresh Surana, Founder, RSM India)

Part 4(1) of The Payment of Gratuity Act, 1971 gives that gratuity shall be payable to an personnel on the termination of his work right after he has rendered ongoing service for not considerably less than 5 years in the adhering to circumstances:

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his demise or disablement thanks to accident or illness:

However, the affliction of completion of ongoing service of 5 several years shall not be essential where by the termination of the employment of any employee is due to dying or disablement. Herein, “completed calendar year of provider” would mean continual provider for 1 year and an worker shall be stated to be in continuous services for a period if he has been in uninterrupted provider, such as assistance which might be interrupted on account of illness, incident, leave, absence from duty devoid of leave, lay off, strike or a lock-out or cessation of function not owing to any fault of the personnel.

Even more, it is to be famous that the Madras High Court in the situation of Salem textile scenario (2011) experienced dominated that an employee would be suitable for gratuity even if he has done 4 several years 240 days.

You can also examine with the HR crew of your firm on the eligibility to assert gratuity dependent on the provisions of the legislation reviewed and also the judgement of the Madras Superior Court docket.

(Deliver queries to mintmoney@livemint.com)

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