I labored in an organization for 4 years and seven months. Am I eligible for gratuity?

I’ve labored in a producing group for 4 years and 7 months (234 days). My firm was working for five days per week. Am I eligible for gratuity? If sure, are you able to share me any notifications or excerpt from the IT Act which can show that I will likely be entitled to get the gratuity from my group.

-Name withheld.

Section 4(1) of The Payment of Gratuity Act, 1971 (‘the Act’) offers that gratuity shall be payable to an worker on the termination of his employment after he has rendered steady service for not lower than 5 years within the following instances:

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his demise or disablement as a result of accident or illness

Thus, in accordance with the Act, an worker is eligible for gratuity provided that he/she has accomplished 5 years of service with a corporation. These 5 years should be steady and there shouldn’t be any hole within the providers of the worker with that firm. However, the situation of completion of steady service of 5 years shall not be essential the place the termination of the employment of any worker is because of demise or disablement. Moreover, “completed year of service” would imply steady service for 1 12 months and an worker shall be stated to be in steady service for a interval if he has been in uninterrupted service, together with service which can be interrupted on account of illness, accident, depart, absence from obligation with out depart, lay off, strike or a lock-out or cessation of labor not as a result of any fault of the worker.

Further, it’s to be famous that the Madras High Court within the case of Salem textile case (2011) had concluded that an worker could be eligible for gratuity even when he has accomplished 4 years 240 days. Thus, in accordance with this resolution, the worker could be eligible for gratuity on completion of 240 days and the necessity not full your entire fifth 12 months of service to be eligible to gratuity. However, the stated choices could be restricted to the state of Tamil Nadu solely and should not apply to the remainder of the India and therefore, it’s litigative. Thus, there’s a risk that authorized authorities might take a view which can differ from the aforementioned Madras HC resolution.

Accordingly, it’s all the time recommendable to examine with the employer group with respect to their authorized stand on the purpose of interval of interruption providers on account of illness, accident, depart, lay-off, strike, lock-out, or cessation of labor which isn’t as a result of any fault of worker, which can be thought of within the computation of 5 years.

Query answered by Dr Suresh Surana, founder, RSM India. Send your queries at mintmoney@livemint.com

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