Another 10 FAQ on Gratuity Act in India


Gratuity

 

One of my most popular blog post from my old blogs archive is 13 facts one should know about Gratuity!! Thanks to all my HR friends to read and share their feedback and queries about gratuity. In fact, it was so popular that it has exceeded the limit to take more comments on this blog post.

Hence I have requested to all my friends to post their further queries on our HR Forum i.e. HR SUCCESS TALK Forum so that their queries can be answered by members.

There are few more interesting queries which was asked by HR professionals hence in this post of mine, I would like to put them in summaries form for other readers.

FAQ 14: What is the procedure to be followed in case an employer is not paying gratuity to employee or terminating employee services intentionally for purpose of non payment of gratuity.

I would suggest, that employee in such cases should send a letter to employer through registered post mentioning about his employment with organization and asking for gratuity amount. In case, there is no reply from employee then another letter through registered post should be sent where employee should given reference of first letter and ask for reply. Employee should also mention that in case employer do not reply then in that case employee is left with only one option- approaching labour court.
Employee should keep copy of correspondence with employer. I am sure that in many cases, you will receive reply or your gratuity amount from employer. But, in case there is no action taken by employer then you should approach competent authority of their region to file a case.

FAQ 15: Gratuity is part of my CTC. I have left company before completing 5 years. Can I claim my gratuity as it was mentioned in my CTC.

Gratuity is payable only when an employee completes 5 years of continuous service. If an employee leaves company before 5 years then employee is not eligible for gratuity irrespective whether same was part of employee CTC or not.

FAQ 16: I have resigned on 1st Jan 13 and will leave by 30th Jan 13. I will complete 5 years by 20th Jan 13. Will I be eligible for gratuity as I am under notice period? Is it related to my resignation anyways?

To calculate number of years employment, employee’s date of joining and date of leaving is considered and it has nothing to do with date of resignation. In above case, employee will be eligible for gratuity as employee will leave after completing 5 years.

FAQ 17: One of my friend was working with XYZ company on probation period for 1 year and after completion of probation period he got confirmation letter from Management. His total tenure of service was 5 years 3 months (Including Probation Tenure). In view of above scenario, I would like to know about whether he is eligible for Gratuity? Should we consider Probation period/ training period etc. for completion of 5 years of service while computing Gratuity Payment to the concerned employee?

Probation period is considered while calculating eligibility for gratuity.

FAQ 18: Can an employee claim gratuity after completion of 5 years without leaving the organization?

Gratuity can only be claimed once an employee leaves the organization and not in between.

FAQ 19: After an employee leaves organization, in how many days a company should pay his gratuity amount?

Max within 30 days.

FAQ 20: If an employee left us after 5 years without claiming gratuity as part of exit ( I read in gratuity act that he has to make a written request), completed all exit formalities and left. Can he come back and claim gratuity after 3 or 4 years. Is there a time period when he should make the request. What is the liability of the company in such cases?

Gratuity payment is employer liability hence employer need to ensure make payment along with Full and final of employee irrespective whether employee claims it or not. Employee can claim Gratuity any time after exit. This has been the result from many high courts’ verdict on the issue.

FAQ 21: A person worked for ABC company in India. He was sponsored by xyz company in USA on H1 (local work visa) and went to USA for 6 months and was paid by XYZ company in USA. No payroll was run for him in India during that time and hence has a break in payroll in India. Employee returned back to India due to personal reasons and joined back in ABC company. ABC and XYZ companies have two directors in common. So do we need to consider this as continuous employment and pay him gratuity? He signed different agreements with ABC and XYZ companies as per local laws.

Only because the directors of both company is same does not establish relationship with respect to continuous employment especially when employee had different agreement with ABC and XYZ company. Hence as per my opinion, it should not be considered as continuous employment hence gratuity is not applicable.
In case company ABC has given transfer letter to you to work in XYZ company then you can claim gratuity.

FAQ 22: I worked in company ABC for 3 years and then company name changed to XYZ where I have continued and worked for 4 years. We did not have to resign from company ABC and nor did we have to join in company XYZ. There was no new joining letter, no new terms and conditions. Company management also remained same. Salary account created by the company ABC also remained the same.Now after my resignation, the company has not paid my gratuity even after one month. For claiming gratuity in form ‘I’, shall I write the employer name as Company ‘XYZ’ or ‘ABC’ or ‘XYZ (earlier ABC)’.

Company has to pay you your gratuity amount as you are very well eligible for gratuity. Your total tenure is 7 years. You can write to company through registered with AD asking to pay your gratuity amount. In case company do not revert to your letter then you can approach labour office and file your claim.

FAQ 23 : I have worked with a company called “X Pvt Ltd” registered in India for 7yrs and now I’m moving to our USA office (same company registered as “X Inc” in USA). I’ll be a permanent employee in USA from now and on US payroll. I’m no longer an employee of company X registered in India. Am I eligible for gratuity now?

Yes, As you have complete more than 5 years in India, you can claim your gratuity now.

 

 

484 Comments

  1. AMAN JAIN September 17, 2013 10:20 am  Reply

    IF A PERSON GOT GARTUITY ONCE AND AGAIN HE JOINS THE ORGANISATION AS A CONSULTANT . SO WHETHER HE CAN BE GIVEN AGAIN GRATUITY OR NOT ..??/ IS THERE ANT LAW WHICH STOP TO DO SO..?

    • govindsinghnegi September 17, 2013 11:06 am  Reply

      Dear Aman,

      A consultant is not eligible for gratuity.

      • N Gargi Hemanth June 21, 2014 8:58 am  Reply

        Hi

        Iam N Gargi Hemanth i wanted to know is time limit to clear gratuity differ in case of death . Like if resigned than gratuity should be paid within 30days is it same for death case

      • K.Satyanarayana February 6, 2016 9:11 am  Reply

        Dear Sir,

        an employee whos retirement age is fixed as 55 yea as per the appointment order and standing orders of the company as 55 years (amended later as 58 years while working in company) and accordingly he has been paid the gratuity as per the last basic salary of rs.5000/- eventhough in the amended standing orders of the company retirement age is 58 years. On his request he has been reappointed after 3 days break in service for 2years and accordingly letter issued. After 2 years 8 months he has been relieved from the duty as per the letter issued him. Now he is claiming gratuity that he is eligible for gratuity from date of his first appointment on the last basic salary of Rs.6500/- eventhough he has received the grautity amt on basic amt of rs.4665/- and which was paid before rejoining the company. .

        1) whether he is eligible to get gratuity since there is break in service of 3 days.
        2) Whether he is eligible to calculate on 6500 basic pay for by taking into account of service from first appointment to second appointment. If we want to pay can we calculate on 6500/- basic salary for that 2 years 8 months only.

        Pl advise.

        K.Satyanarayana

        • HR SUCCESS TALK February 9, 2016 4:07 pm  Reply

          Dear Satyanaryana

          If there is a break in the service then you are not eligible for last 2 years plus services which you served after break.

          which also means that you should be paid gratuity on basic salary for first phase of your employment with company and not on the basis of basic of second phase with company.

          But looking at your case completely, there is a chance to claim gratuity for total tenure including both phases and on new basic but for that you need to knock doors of court.

          Decision is yours.

  2. archana September 26, 2013 3:16 pm  Reply

    Dear Govind,

    if a person is not working on payroll, his is getting salary in cash (e.g. office boy), and after 7 years of his services when he is leaving the co., is co. is liable to pay gratuity (co. is registered under shop & establishment act).

    • govindsinghnegi September 27, 2013 5:35 am  Reply

      Dear Archana,

      If office boy go to court along with any sort of proof that he was associated with your company and serving as office boy since last 7 years then he will get his gratuity and other employment benefits.

      As organization, we should not encourage such practices of not keeping a person on company roll if that person is serving organization.

      Basis above inputs you can take your call.

      • Archana September 27, 2013 8:06 am  Reply

        Thanks for reply Govind

        this question was from my friend. he was not satisfied with the wordings of my question, he again put the question in other way. in his word the question is “If company has 5 employees on payroll and not deducting PF ESIC then company is liable to pay Gratuity if any employee has finished 5 years or more?”.

        Kindly reply on this query Govind.

      • Archana September 27, 2013 8:14 am  Reply

        Dear govind,
        thanks for your reply. This question was from my friend but he was not satisfied with the words of questions I put it here. so I am putting this question in his own words “If company has 5 employees on payroll and not deducting PF ESIC then company is liable to pay Gratuity if any employee has finished 5 years or more?”.

        Kindly guide us govind!

        • govindsinghnegi September 27, 2013 11:13 am  Reply

          Dear Archana,

          Company with 10 or more employees only liable to pay gratuity.

          • archana September 27, 2013 7:24 pm  Reply

            Thanks Govind!

            • govindsinghnegi September 28, 2013 4:10 am  Reply

              Dear Archana,

              you are always welcome

              • Sangeeta June 24, 2014 11:18 am  Reply

                Dear Govind,

                I am working with a private limited company registered under companies act 1956 and was registered from November 2005, I am working in this organisation from December 2005 and my salary slips also states the same. This company is getting all its money from its UK based company with the same name as the limited company not the private limited. But this Indian company is having two people employed on its payroll and one person on cash payment basis. Please advice if I can claim my Gratuity as I have completed 9 years. UK company has offices all over the Asia including India, Bangladesh, China etc. and employed more than 150 people.

                regards,

              • Suman March 9, 2016 12:49 pm  Reply

                Dear Govind sir,
                My question is that can an employee withdrawal his/her gratuity amount while he/ she is in service specifically in pvt company. Plz do reply me.

                Suman.

              • Deena Ouseph April 4, 2016 4:59 am  Reply

                sir
                i have a doubt .
                whether an employer can give gratuity even if he employees only 3 employees.
                i mean whether an employee can give gratuity on his will even without fulfilling the conditions.

  3. prasad September 28, 2013 5:33 am  Reply

    If Person put the resignation and company also accept the resignation. after 15 days he again join the same company on same payroll. Company not provide the new appointment letter. person is completed 5 years in the company then he eligible for Gratuity.

  4. prasad September 28, 2013 5:41 am  Reply

    He resign after 3.5 years only for 15 days and he again join the same company after that he work 2 years. Total he work 5.5 years. He eligible for Gratuity.

  5. govindsinghnegi September 28, 2013 6:01 am  Reply

    Dear Prasad, Its all depend upon how company has considered as your employment. If company has taken your employment continuous and taken 15 days as leave without pay then you will become eligible. If company has considered you as fresh joinee then you will not be able to consider your previous employment tenure for gratuity purpose.

  6. govindsinghnegi September 28, 2013 6:02 am  Reply

    Dear Prasad,

    Refer my below reply on your earlier query.

  7. prasad September 28, 2013 7:17 am  Reply

    Thanks Govind for Advice…….

    When I re-joining company accept for continuation. but now company denied for continuation. I have old appointment letter. when i re-joined company not give me the new appointment letter. On payslip also company mention 15 days Leave without pay.

    Please guide us……………

  8. prasad September 28, 2013 8:38 am  Reply

    Thanks Govind for Advide………..

    When i was re-joined the company they accepted for continuation. they also not prepared new appointment letter, and on my salary slip they mention 15 days leave without pay. But now they denied for continuation. I have my old appointment letter and all payslip.

    Please advice, on above issue company is liable to pay me Gratuity.

    • govindsinghnegi September 29, 2013 1:41 pm  Reply

      Dear Prasad,

      Considering the fact that in your payslip those 15 days are mentioned as leave without pay and you have not been issued fresh appointment letter, you are eligible for gratuity. I am also assuming that there is no full and final done in your case.

  9. prasad September 30, 2013 5:48 am  Reply

    Dear Govind,

    Thanks a lot for your advice…………

    no……….. there is no full & final done…………

    Again thanks…………….

    • govindsinghnegi September 30, 2013 6:08 am  Reply

      You are welcome Prasad.

  10. ramani October 10, 2013 8:30 pm  Reply

    pl let me know the exact position in case of sanctioned leave but without pay .Out of 7 years service 18 months was without pay in two spells. is this break in service????

    • govindsinghnegi October 11, 2013 10:49 am  Reply

      If you have not been asked by company to leave and you have same ecode in this case above will not be counted as break in service.

  11. Murthy November 11, 2013 9:16 am  Reply

    If a person retired from a company after his full service and received gratuity and again joined again same organisation after a few months as an employee(Not consultant) and served the same organisation for another 10 yrs, then whether this employee is eligible for Gratuity again for this 10yrs he served? Since the organisation has paid gratuity once whether they can deny? Since the person is retired and served after that again will he be eligible for gratuity?

    • govindsinghnegi November 12, 2013 3:35 pm  Reply

      Dear Murthy,

      You are again eligible for gratuity for 10 years.

  12. Manvir November 11, 2013 9:24 am  Reply

    I am working in ABC company nd i wany to know my gratuity details.But company said as per gratuity act we can not provide gratuity details…is this true

  13. govindsinghnegi November 12, 2013 3:39 pm  Reply

    Dear Manvir,

    It is quite simple to calculate. Gratuity is equal to Basic salary x 4.81% x number of months in the company. Please note gratuity is applicable only when you complete 5 years of continuous service.

  14. Mansha November 26, 2013 11:26 am  Reply

    Dear Govind,

    My one friend worked in a group company. At the time of joining he has join in XYZ & after 3 years company asked him to put down paper & join another company of the group JKL. He done the same thing & served the new company in the same group for another 3 years.

    Is he eligible for the gratuity?

    • govindsinghnegi November 27, 2013 4:18 am  Reply

      Dear Mansh,

      If management of both companies are same then employee can claim for gratuity.

  15. Sarita Pareek December 17, 2013 10:33 am  Reply

    Hello Sir,
    Thanks for sharing such valuable information. Just wanted to know that in this gratuity formula :- basic/26*15* No. of years, What does 15 stands for?

    Regards,
    Sarita

  16. govindsinghnegi December 17, 2013 3:16 pm  Reply

    Dear Sarita,

    15 stands for 15 days salary of employee in a year.

  17. Sarita Pareek December 18, 2013 5:57 am  Reply

    Hello Sir,
    Please clear my one more doubt if the employee is terminated from his job after 5 years & there is valid reason for his termination than can any employer reject to pay the gratuity?

    • govindsinghnegi December 27, 2013 3:39 pm  Reply

      Dear Sarita,

      There could be some reasons for which employer can forfeit gratuity claim and those reasons are as below:

      1, If the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or

      2, If the service of such employee have been terminated for any act which constitutes an offense involving moral turpitude, provided that such offense is committed by him in the course of his employment.

      Please note that above act should have been committed by employee during his employment. There should be a proper enquiry held after which employee was found guilty for aforesaid act or misconduct. Once proved guilty, employer should issue termination note to employee describing about his misconduct.

  18. Sunanda December 27, 2013 3:26 pm  Reply

    Hi,
    If an employee dies just in 2 or 4 month of joining the company so what will be the amount of gratuity for that employee?

    • govindsinghnegi December 27, 2013 3:43 pm  Reply

      Dear Sunanda,

      In such case employee’s family will get gratuity for 2 years. But in case employer has taken some policy against gratuity like from LIC then employee’s family can also get sun insured against death

      • sanjay January 6, 2015 7:45 am  Reply

        in case an employee dies in one month of service or two month of service , will he is eligible for gratuity

  19. Anirudha January 13, 2014 10:29 am  Reply

    Dear Sir,
    I worked in XYZ company for 4 years and then company transfereed me to her sister concern ABC without giving any transfer letter. I have not submitted any resignation letter and no Full and Final was done for XYZ, but the company gave new appointment order in the name of her sister concern, ABC; where I worked for 7 years.
    Now they are showing my span of service only 7 years. Am I eligible for 11 years of gratuity payment or 7 years only ?

    Regards,
    Anirudha

    • govindsinghnegi January 14, 2014 3:03 pm  Reply

      Dear Anirudh,

      You are eligible for gratuity for the period of 11 years. You should approach your company HR with a complete detail and write them about it. You will surely get it.

  20. rohit January 15, 2014 5:13 am  Reply

    I need to know the exact calculation while an employee completes say 7 yrs, 6 months and say 15 days. Will this be round off to 8 yrs or consider as 7 years only?

  21. Reena January 17, 2014 9:48 am  Reply

    Dear sir,
    I was working in one private education institute (ABC) for 6 year, then I joined another institute (XYZ). When I left ABC they were not willing to relieve me. I never asked them to pay me my gratuity. Can I now ask ABC to pay me after 8 years of leaving the institute.

    Regards

    Reena

    • govindsinghnegi January 19, 2014 12:22 pm  Reply

      Dear Reena,

      First of all you need to justify the reason of asking gratuity after 8 years. Although there is no time limit to claim gratuity however a logical reason is required.

      At the same time, it is primarily responsibility of employer to pay gratuity within 30 days of employee leaving organization.

      Please approach ABC and ask for your gratuity. Let us know what is the outcome. We will suggest accordingly.

  22. govindsinghnegi January 19, 2014 12:17 pm  Reply

    Dear Rohit,

    After completion of 5 years, subsequent years are rounded off to a year if employee completes 6 months or more. Hence in your case you will be eligible for 8 years gratuity amount.

  23. Smitha February 4, 2014 11:25 am  Reply

    hello,
    I have resigned from a company after 5 years 1 month. I joined in Co A and after 1 year 8 months was trf to Com B which was in the same premises and directors were the same. Now for payment of gratuity the company has asked me to give proof in writing that I am eligible to receive. they say i did not complete 5 years in any one compnay so I am not eligible, Kindly help…

    • govindsinghnegi February 6, 2014 3:55 pm  Reply

      Dear Smitha,

      You are very much eligible for gratuity. Company B need to pay you gratuity for 5 years.

  24. Bala February 10, 2014 4:36 pm  Reply

    Hi,

    Awesome blog, thanks first!

    I am working for company A for the past 6 years. In between, I went to US for the same company in H1 visa and stayed for 1.5 years. Am I eligible for gratuity? If not now, am I eligible after 6 months from now?

    Thanks,
    Bala

    • govindsinghnegi February 16, 2014 5:37 am  Reply

      Dear Bala,

      If you are transferred by company to US then you are eligible. If there is dis continuity in your services then you are not eligible as of now.

  25. bhakti February 25, 2014 8:40 am  Reply

    hi,

    I want to check if two separate companies under the same management have a total of 10 employees then are they liable to pay gratuity to any employee after 5 years ?

  26. govindsinghnegi February 25, 2014 11:15 am  Reply

    Dear Bhakti,

    Management should have a strong reason of opening two different companies otherwise both companies should be considered one and gratuity will be applicable.

  27. Praveen February 26, 2014 5:10 am  Reply

    Pl.let me know that E-Mail massages are considered as legal information to emloyer for gratuity relaease

    • govindsinghnegi February 26, 2014 6:07 am  Reply

      Dear Praveen,
      You should better send your communication through registered post. Email are also considered as legal proof. If you send through your official email id, it will be much better.

      • Praveen February 26, 2014 12:09 pm  Reply

        Thanks Mr.Govind SinghNegi ji,

        I have also sent the registered mail including the filled form ” I ” for the refund,but there is no reply from the employer. and on telephone they give useless clarification ,what should I do? It is almost one year of resignation.
        I am working and do not have much time and leaves to attend the courts if go legal?

        • govindsinghnegi February 26, 2014 12:17 pm  Reply

          Dear Praveen,

          You should send them a letter through registered post with AD mentioning your employment related information and asking for your gratuity amount. You should also attach Gratuity Bare act highlighting the point which shows that you are eligible for gratuity.

          Wait for 7 days. If you dont get reply then send second letter through registered post with AD referring first letter and mentioning that you did not got any revert and if you dont get further revert then you are forced to approach labour court for settlement.

          Please let us know the status once you do so.

  28. Brij Mohan Vashist March 4, 2014 6:56 am  Reply

    Dear Govind ji,

    I had left the employer in oct 2011 after 9 years of employment, thereafter they have not paid my gratuity despite my several requests. the employer had extracted a written declaration that i have received my gratuity though they did not pay it & they do not have any proof like bank transaction or cash voucher receipt of the same. What are the options open for me? please advise

    best regards

    Brij

    • govindsinghnegi March 4, 2014 10:27 am  Reply

      Dear Brij,

      You should write a letter to them mentioning complete case and asking them to pay the gratuity amount else you are forced to approach labour court.

      Let us know their reaction to it.

      • Brij mohan Vashist March 4, 2014 12:06 pm  Reply

        Thanks Govind Ji, my doubts were regarding 2 things.
        1) is the declaration of having received the gratuity without any supporting evidence enough to deny me my gratuity?
        2) is there any upper time limit to claim gratuity?

        Best regards

        Brij

        • govindsinghnegi March 4, 2014 4:14 pm  Reply

          Dear Brij,

          Following are point by point answer of your query.

          1. This is rare situation. They have your acknowledgement of gratuity payment but you have not received the same. You can claim the same. Let employer proof that it was paid to you and in which mode.

          2. There is no upper limit of claiming gratuity. you can claim at any point of time but you should have valid reason of delay. In your case what was your reason of not claiming till date?

  29. ARIJIT SINHA March 19, 2014 6:51 am  Reply

    Hi,
    I had joined company on 17th Aug 2009. So if I leave company on 17th Jul 2014, will I be eligible for gratuity…

    • govindsinghnegi March 22, 2014 3:10 pm  Reply

      Dear Arjit,

      As you have not completed 5 years hence you are not eligible for gratuity

  30. Ravi March 20, 2014 11:37 am  Reply

    My friend was employed by a consultancy firm ABC under their payroll but for company XYZ for 1 year. Then he got direct employment into XYZ and worked for 4 years. Is he eligible for gratuity?

    • govindsinghnegi March 22, 2014 3:08 pm  Reply

      Dear Ravi,

      As he has primarily worked for XYZ for 5 years (1 year on third party and 4 years on XYZ rolls), he is eligible for gratuity.

  31. Sunil syal March 27, 2014 11:22 am  Reply

    if a person join an organisation at the age of 60+,whether he will be entitled for gratuity after his service of 5 years

    • govindsinghnegi March 28, 2014 5:34 pm  Reply

      Dear Mr Sunil,

      If person is employed as employee then he is eligible for gratuity. Please refer the contract / appointment letter issued.

  32. Bhupesh Chopra March 27, 2014 10:16 pm  Reply

    Hi,

    We work for a BPO process in a US Co. from last 3 years and now our process is going to shut down in 2 months. Now our co. has given us a notice period of 2 months. And as a permanent employee, gratuity gets deducted from our salary on a monthly basis.

    There are total 150 people in our process, are we eligible for Gratuity amount.

    Thanks for guidance in advance.

    Regards
    Bhupesh

    • govindsinghnegi March 28, 2014 5:39 pm  Reply

      Dear Bhupesh, You are not eligible for gratuity as you have not completed 5 years with the company.

  33. Shoheb Shaikh March 28, 2014 1:44 pm  Reply

    Hello Govind,

    Thanks for this wonderful thread, really appreciate your help.

    My mom was terminated from er school in 2005 as there were no students, she hasn’t claimed for gratuity till date, can she claim it now, as it has been around 9 years she has left the school, she stared working with them in 1978, so has worked with them for 27 years.

    Thanks in advance for your help and keep up the good work.

    • govindsinghnegi March 28, 2014 5:43 pm  Reply

      Dear Shoheb, Although technically she can apply for her gratuity but she should have a valid reason for the delay. There is no harm in applying and trying for her hard earned gratuity amount. She should send a letter through registered post stating her employment with the school and demanding for gratuity for 27 years of service. Lets see. Let us know what happened?

      • shoheb April 18, 2014 2:32 pm  Reply

        Thanks a lot Govind, appreciate your help.

  34. Renu Kalra March 29, 2014 1:30 am  Reply

    Dear Gobind,
    Hello
    I am Renu & my query is that i rendered more than 15 years service as a senior auditor in central govt. organisation, due to family circumstances i resigned but my department not paid any gratuity benefits to me and said that they donot have clarification for that..if u have rule or authority then kindly mail me sothat i can show to them for payment of gratuity,
    please help me…
    Hope for positive reply
    Thanks & Regards
    Renu Kalra

    • govindsinghnegi March 29, 2014 8:14 am  Reply

      Dear Renu,

      I have no idea about Central govt employees. Will check and revert. Meanwhile, I would request you to post this query on our forum so that other members can share their views.

  35. Unnatti March 31, 2014 6:16 pm  Reply

    If a person worked more than 5 years for the company & gratuity is never deducted from his salary. Can he claim for gratuity?

    • govindsinghnegi April 2, 2014 3:03 pm  Reply

      Dear Unnatti,

      Gratuity is never deducted from employee salary. It is employer liability to pay. Most companies keep it as part of CTC.

      Yes, employee is eligible for gratuity after completion of 5 years of continuous service irrespective it was part of his CTC or not

  36. naven April 6, 2014 5:56 am  Reply

    Dear Govind

    I joined company on 01-04-2009 unfortunately on 11-03-2014 I got suspended for one month and company asked me to report back on 14-04-2014. But I decided to leave the company and resigned immediately. I got acceptance of my resignation on 03-04-2014. So in total i served the company for 4 years 11 months and 11 days with out considering suspension period. Am I eligible for gratuity? Many blogs explains that 4 years 10 months is eligible criteria for gratuity. Will the suspension period be also considered into service.

    • govindsinghnegi April 22, 2014 3:24 pm  Reply

      Dear Naveen,

      As you have not completed 5 years hence you are not eligible for gratuity, Query you are referring to is only for Chennai State.

  37. Ram April 11, 2014 5:08 pm  Reply

    Hi Govind,
    I am working in company XYZ, if part of XYZ is sold to another company ABC, and if I am part of that group, Am I eligible for gratuty?

  38. Ramprasad.p April 17, 2014 2:27 am  Reply

    Dear Govind ji,

    at FAQ5, it is said that “Nowhere in act, it is mentioned that employer need to take any sort of insurance policy for gratuity payment”. But I understood from Sec.4A(1), it is mandatory to take insurance from LIC or any other prescribed insurer.

    Please clarify
    Ramprasad.p

    • govindsinghnegi April 22, 2014 3:25 pm  Reply

      Dear Ram,

      No it is not mandatory

  39. govindsinghnegi April 22, 2014 3:24 pm  Reply

    Dear Ram,

    Yes you are eligible for gratuity

  40. Ramappa April 24, 2014 4:16 pm  Reply

    My monthly grace salary Rs. 45000 and it is divided in to 18000 as basic HRA 13500 and Allowance 13500 and total 13yrs worked in Bangalore Branch and HO is Gurgoan. Now my company is cleared my gratuity considering only basic Rs. 18000/- and they have not considered the allowance. my question is if company is not showing as DA in salary slip, allowance should be considered or not?.

    My company replied that they are not paying DA and only basic is considered for calculating the Gratuity.

    Please help in this regards
    Ramappa

    • govindsinghnegi April 28, 2014 4:24 pm  Reply

      Dear Ramappa,

      Your company is correct. Basic + DA is considered for payout of gratuity. In case there is no DA in salary structure then gratuity should be paid on Basic only.

      Other allowance are not considerable.

      • Ramappa April 28, 2014 11:20 pm  Reply

        Dear Sir,
        Thanks for clearing my doubts.

        Please clarify me one question regarding bonus and incentives.

        My second question is my basic is 18000/-, whether i’m eligible to get bonus or not?. My company is paying bonus and incentives to all employee’s before the Deepavali festival.

        For me the last financial year 2012-13 and 2013-2014 bonus and incentives company is not paid, for the same mailed my company they replied that i’m not eligible for the bonus due to my basic is more than 10000/- (other employee’s are got the bonus who’s basis is more than 10000/-) and regarding the incentives they said that i’m in a notice period (Resigned for the job). company relived me on 09-01/2014. (I’ve given the notice period of three month ass per the company police i’e from 10-10-2013 to 09-01-2014)

        in both cases i’m eligible or not? please clarify the same.

      • Ramappa April 30, 2014 2:27 am  Reply

        Dear Sir,
        Please clarify me one question that I’ve read the Sastri ward for banks in that its mentioned that when the employee is served more than 10yrs continues service and one month salary should considered upto 30yrs not as a 15days per year. this award is applicable to all organisation or only bank employee’s.

        My company considered only basic and 15days per year.

        Please clarify me whether, if any employee is more than 10yrs, per year 15days basic salary or one month basic salary has to considered (If company DA is not giving).

      • Ramappa April 30, 2014 2:30 am  Reply

        Dear Sir,
        Please clarify me one question that I’ve read the Sastri ward for banks in that its mentioned that when the employee is served more than 10yrs continues service and one month salary should considered upto 30yrs not as a 15days per year. this award is applicable to all organisation or only bank employee’s.

        My company considered only basic and 15days per year.

        Please clarify me whether, if any employee is more than 10yrs, per year 15days basic salary or one month basic salary has to considered (If company DA is not giving).

        • Ramappa May 1, 2014 5:31 pm  Reply

          Dear Sir,
          I didn’t get the reply. kindly reply me.

          Please clarify me one question that I’ve read the Sastri ward for banks in that its mentioned that when the employee is served more than 10yrs continues service and one month salary should considered upto 30yrs not as a 15days per year. this award is applicable to all organisation or only bank employee’s.

          My company considered only basic and 15days per year.

          Please clarify me whether, if any employee is more than 10yrs, per year 15days basic salary or one month basic salary has to considered (If company DA is not giving).

  41. Samir Inamdar April 28, 2014 10:21 am  Reply

    Hello Govind,

    I was working in a Pune based company from Jan 1998 to March 2001 as an employee and then from April 2001 to November 2003 as consultant due to high salary and saving tax. Thus you can say that I was a full time employee from the period Jan 1998 to Nov 2003 i.e. 5 years 11 months. When leaving the company they said that since I moved to a role of consultant (though it was exclusive and i was not working for any other company) I am not eligible for gratuity. based on your replies above it seems I am eligible. Is my understanding correct? If yes, how can I approach the company for the dues? Is there a legal entity that helps employees get their gratuity/PF etc.?

    Appreciate you reply and thanks in advance!

    Samir

  42. K.Paripurna April 28, 2014 2:11 pm  Reply

    A reputed and funded by Public Sector school paying less gratuity to their employees Is it correct or not please clarify my doubt. thanking you in advance.

    • govindsinghnegi April 28, 2014 4:10 pm  Reply

      Dear Paripurna,

      there is no option to pay less gratuity. Every employer including school should pay gratuity as per the act.

      • K.Paripurna April 29, 2014 6:28 am  Reply

        Dear Govind ji Thankyou so much for your response. can I ask them to pay balance amount? or can I approach court? please reply.

        • K.Paripurna May 1, 2014 5:56 pm  Reply

          Sir, I asked one question. But I did not get answer please reply sir.

          • Ramappa May 2, 2014 4:30 pm  Reply

            Dear sir,
            I didn’t get the reply of query. kindly do the needful.

  43. govindsinghnegi April 28, 2014 4:21 pm  Reply

    Dear Samir,

    Please let me know, did you got your full and final before getting appointed as Consultant? Also it is important to see terms and condition of your consultancy letter.

    What was the exact date of leaving as employee and joining as consultant?

    These details can not be provided here as comment hence request you to post your query along with aforesaid details at our HR Forum.

    • Maggi May 10, 2016 12:23 pm  Reply

      Dear Govind,

      I too have a query.

      What if a person is resigning from a company after 8 years of service but in the tenure there were two years in which he had not recorded 240 days of working including official leaves etc. How many years should be considered for Gratuity payouts??

  44. Ramappa April 28, 2014 11:12 pm  Reply

    I have worked in XYZ for 13yrs and my last salary was 45000/- and it divides into three parts VIZ Basic is Rs. 18000/- HRA is Rs. 13500/- and Allowance Rs. 135000/-.

    While calculating the gratuity my company considered only basic. I’ve asked my company why the allowance is not considered while calculating the gratuity, they said that for gratuity basic and DA only should be considered and company is not paying any DA to any employee. so basic is only considered for gratuity.

    My question is my company claim is correct? or they need to considered allowance also?
    Please clarify the same.

    My second question is my basic is more than 10000/-, whether i’m eligible to get bonus or not?. My company is paying bonus and incentives to all employee’s before the Deepavali festival.

    For me last financial year 2012-13 bonus and incentives are company not paid, for the same asked my company they said that i’m not eligible for the bonus due to my basic is more than 10000/- (other employee’s are got the bonus who more than 10000/-) and regarding the incentives they said that i’m in a notice period (Resigned for the job).
    in both cases i’m eligible or not? please clarify the same.

  45. govindsinghnegi May 5, 2014 7:22 am  Reply

    Dear Paripuran,

    You should approach the school first before proceeding for legal option. Send them a letter in writing informing them about actual amount, amount paid and pending amount to be paid as gratuity

    • K.Paripurna May 8, 2014 7:55 am  Reply

      Dear sir, As you advised Irequested them to pay balance,but they are telling that there is no gratuity eligibility to teachers. Is there any point is there ingratuity act.please give the reply. thankyou for your suggestions.

      • K.Paripurna May 14, 2014 9:52 am  Reply

        Sir, I requested you to give a suggestion, but I did not get reply. Please give your valuable suggestion. K.Paripurna.

        • K.Paripurna May 30, 2014 7:11 am  Reply

          On May 14th I requested you to give a suggestion but I did not get reply. As you said I sent a letter requesting to pay, the balance but they gave the reply that ours is nonprofitable organisation sothat their rule is maximum limit of gratuity is ₹3.5lakhs only. What should I do now? To whom should I approach? Please give me your valuable suggestion. Thankyou in advance.

          • K.Paripurna. June 2, 2014 5:11 pm  Reply

            Sir, Iasked you a queri.Ididnot get reply. Sir please give your suggestion. I will be grate ful to you.

  46. govindsinghnegi May 5, 2014 7:43 am  Reply

    Dear Ramappa,

    Your company is correct in case of gratuity. Gratuity is paid on Basic and not on all the allowances.

    You are not eligible for statutory bonus as your basic is more than 10000.

    Incentives are paid as per company policy and in case your company policy says that you will not be paid incentive if you have resigned then they are correct here too

  47. govindsinghnegi May 5, 2014 8:12 am  Reply

    Dear Ramappa,

    Bank can have their own policy regarding gratuity provided it is more than suggested by law.

    Ideally a person get 15 days salary for completion of every year after 5 years of continuous service

    • Ramappa May 6, 2014 3:52 am  Reply

      Dear Sir,
      Thanks for investing your valuable time for clarifying my doubts.

      • govindsinghnegi June 29, 2014 4:46 am  Reply

        Dear Ramappa, You are welcome

    • Gurvir Birring May 22, 2014 12:09 pm  Reply

      Hello Govind,

      Does eligibility for employment gratuity in terms of time period i.e. 4 years & 240 days, will be same for employees working in 5 days a week organization as compare to ]employees working in 6 days a week organization.

      Thanks in advance!!!!

      Gurvir

      • govindsinghnegi May 25, 2014 4:37 am  Reply

        Yes

        • govindsinghnegi May 25, 2014 5:18 am  Reply

          240 days in case organization is 6 days a week. 190 days in case organization is 5 days a week.

  48. MT May 23, 2014 10:39 am  Reply

    Hi Govind,

    I was working for a USA based company as consultant from India for 5 years 3 months and after that company relocated me to their London office as full time employee.

    While in India I was working for the company from one of their offshore vendor location.

    As per the contract I was invoicing the company weekly and was getting paid leave as well as the medical benefit.

    Could you please advice if I would be eligible for the gratuity.

    Regards,
    M.T

    • govindsinghnegi May 25, 2014 4:40 am  Reply

      Dear MT, If you were raising invoice to claim your consultancy fee meaning you were not regular employee of the company hence not eligible for gratuity. Also it is important to have a look at your consultancy letter

  49. Deepika Bhobhiya May 24, 2014 2:49 pm  Reply

    Hi Govind Sir,

    My query is related to the calculation of gratuity in case of death and disablement, can please guide me if we need to follow the same normal gratuity formula i.e. a person dies after 2.5 years of his service, is the employer liable to pay his nominee gratuity for two years ?? is this the same rule followed in case of permanent disablement?? Thanks in advance…

    • govindsinghnegi May 25, 2014 5:16 am  Reply

      Dear Deepika,

      Yes. Gratuity will be paid for 2 years.

  50. Rahul Salve May 25, 2014 3:53 pm  Reply

    Dear sir,
    I have completed 5 years 9 months in a company I left the company that time it is ltd but they are refusing to give gratuity saying at the time of joining the company was not pvt ltd can I get gratuity?

    • govindsinghnegi June 1, 2014 12:15 pm  Reply

      Dear Rahul, They are wrong in their logic. You are very well entitled for gratuity.

  51. Kaushik May 26, 2014 7:05 am  Reply

    HI Govind,

    My query is if anybody completes 4.6 yrs of service in any organisation, is he eligible for Gratuity? Can 4.6 upto 4.11 months be rounded up to 5 yrs to give gratuity?

    • govindsinghnegi June 1, 2014 12:17 pm  Reply

      Dear Kaushik, For gratuity, you should complete 5 years of continuous services. Hence you are not eligible for gratuity.

      • Kaushik June 2, 2014 11:25 am  Reply

        Dear Govind,

        Thank you for your reply.

  52. srinivas May 27, 2014 4:44 am  Reply

    dear sir,

    would like to know what is meant by last drawn salary. For example. an employee leaves the organization with all the formalities in the middle of the month say 15th of May. So now my question is will his gratuity is calculated on his last 15 days salary or the previous month salary.

    • govindsinghnegi June 1, 2014 12:19 pm  Reply

      It will be calculated on new basic

  53. Rekha A May 28, 2014 12:14 pm  Reply

    Hi,

    I have joined a company on December 18th 2009 and i am planning to get releived on August 19th 2014, I will be completing 4.8yrs only, will i be eligible for Gratuity.
    Please reply………….

    • govindsinghnegi June 1, 2014 12:20 pm  Reply

      Dear Rekha, You are not eligible for gratuity.

  54. Neil Babu May 28, 2014 12:22 pm  Reply

    Dear Govind, great forum and very useful discussion.

    My close relAtive has spent 4y 7months in current job and has an offer to take up a new job. Can she withdraw gratuity after working for 4y 8months? I always thought gratuity is payable after 5y; but I saw a lot of advice on the net, including case laws that gratuity eligibility is after 4 y 190 days. I am confused and can u plse help? Great if you can give some reference.

    Regards,

  55. Arvind May 29, 2014 6:19 am  Reply

    Sir,
    If a person is transferred from company A to company B midway through his service period, then it will be considered continuous service for gratuity purposes right?. Company A and B are owned by the same shareholders. Do you have some case or legislation that you could cite for this purpose.

    Thanks and Regards
    Arvind

    • govindsinghnegi June 1, 2014 12:23 pm  Reply

      Dear Arvind, services in both companies will be considered for the purpose of gratuity eligibile.

  56. Rahul Salve May 29, 2014 2:25 pm  Reply

    Sir please give me answer

  57. govindsinghnegi June 1, 2014 12:24 pm  Reply

    Dear Rahul, Yes i have replied

    • Rahul Salve June 3, 2014 5:35 pm  Reply

      Thanks sir

  58. Rahul Salve June 3, 2014 5:38 pm  Reply

    What should I have to do to get gratuity?

    • govindsinghnegi June 8, 2014 4:48 am  Reply

      Dear Rahul,

      Simple send them a letter stating your employment details and referring gratuity act ask them to pay your gratuity.

  59. Simran June 7, 2014 12:41 pm  Reply

    does a person working for 5 years, 5 months and 1 day working in a company get gratuity for 5 years or 6 years?

    • govindsinghnegi June 8, 2014 4:49 am  Reply

      Dear Simran, you are entitled for 5 years gratuity

  60. govindsinghnegi June 10, 2014 3:39 pm  Reply

    Dear Neil, Your relative is not entitled for gratuity.Which state your relative is employed in?

  61. Abhi June 16, 2014 2:55 pm  Reply

    Dear sir I if I could kindly have your email I’d

  62. venkat June 17, 2014 3:12 pm  Reply

    Hi, I If the employee worked one year from out source n a institute & next four years he worked for the same institute like a permanent employee. and he resigned. Is he gets the gratuity

    • govindsinghnegi June 29, 2014 4:31 am  Reply

      Dear Venkat, You should claim your gratuity as you have worked under same principal employer.

  63. Anuradha June 19, 2014 5:15 am  Reply

    Sir,
    I have joined a company worked there for 7 years and left the service, during that period the company did not opt for gratuity even though the number of employees was more than 10, due to several reasons.

    Now after 2 years of my leaving the job, the company has taken the Gratuity.

    My question is can I claim my gratuity now as it was duty of the employer to take during that time.
    can i go to court if they deny to pay the same.

    thanks

    • govindsinghnegi June 29, 2014 4:34 am  Reply

      Dear Anuradha,

      As per your situation, you can very much claim gratuity, you may not required to go to court.Simply show then copy of gratuity bare act.

  64. Rana June 23, 2014 7:14 pm  Reply

    I worked in company ABC for 4 years and then company name changed to XYZ where I have continued my worked.Then i have eligible for Gratuity?
    .

    • govindsinghnegi June 29, 2014 4:37 am  Reply

      Dear Rana,

      You are very much entitled for gratuity as both the companies are same. Employer can not run away from his responsibility of gratuity by simply changing name of organization

  65. Reshma June 24, 2014 5:54 pm  Reply

    Hi Sir,
    Thanks for the information provided by you in the past. I have a query regarding the gratuity payment. I joined as the 10th employee on 24th Jun’09 in a growing organization and nobody has resigned before my joining. But PF deductions of all employees were started on Apr’10 onwards. My query is “If I resign after 24th Jun’14, will I be eligible for gratuity? Or will be eligible for gratuity only after apr’15, since company started PF deductions in Apr’10?
    Please clarify my doubt regarding gratuity, I shall be highly thankful to you.
    Regards
    Reshma

    • govindsinghnegi June 29, 2014 4:40 am  Reply

      Dear Reshma, Company fall under gratuity the day when it has 10 or more employee. But company need to pay for complete tenure of employee at the time of payment of gratuity. Hence in your case you are eligible for gratuity from the date of joining.

  66. Neha Modi Babbar June 26, 2014 7:45 am  Reply

    Hi, I am working with a pvt ltd organization. We have recently extended the retirement age for one of our employees to 65 years but now there is a concern whether we have to pay him gratuity only till the age of 60 or till the extended retirement age of 65?

    • govindsinghnegi June 29, 2014 4:42 am  Reply

      You have pay gratuity for the number of year the person has served you.

  67. sima June 27, 2014 8:12 am  Reply

    Hi,
    what is limit for PF and ESI deduction because i come to know that it has been change, EPF increase 6500 to 15000 and ESI increase 15000 to 25000. Please reply.

  68. Sham July 8, 2014 4:46 am  Reply

    I am currently working in an org for over 10 yrs and wish to move to another organization , I am willing to transfer my PF to the new organization, But will this be treated as continuation with respect to my gratuity ? Should I have to work for another 5 years in the new org to claim gratuity ?

    • govindsinghnegi July 13, 2014 5:23 am  Reply

      Dear Sham, you need to complete another 5 years with new company to claim gratuity there.

  69. Amit Dang July 10, 2014 9:47 am  Reply

    Hi Sir,
    I am working with company XYZ & I have completed 10 years in April’ 14. I have submitted my resignation & wanted to confirm that post 10 years does Gratuity gets locked & goes to pension fund & is payable at the time of retirement or would i be eligible to get the Gratuity with full & final?

    • govindsinghnegi July 13, 2014 5:24 am  Reply

      Dear Amit, you will get your gratuity along with your full and final only

  70. ABC July 14, 2014 4:11 am  Reply

    Dear Govind ji,

    I am working for a XYZ pvt ltd. company. The company’s head office is based in The Europe and having more then 150+ staff all over the world but in my office there are only four persons working. The name of the company is same the only difference is that the Indian company is using pvt. ltd. behind the company name and the European office is using only LTD. tag behind the same name. One more important thing is when I have asked for my gratuity to my Indian Director, he clearly refused to pay as he was claiming that this company is a independent company, and it is nothing to do with The European organisation. Whereas technically our all funds are credited by European office to Indian company even the hiring and sacking the employee is also in the hands of head office not in the Indian branch. I am working with this organisation from the past 9 years and my current basic is 29500/- now I am leaving, can I claim my Gratuity and part of my bonus as it is being paid every year on Diwali. Awaiting your reply.

    Regards
    ABC

    • govindsinghnegi August 3, 2014 9:54 am  Reply

      Dear Friend,

      you may not be able to claim gratuity

  71. Upma Batra July 15, 2014 5:27 am  Reply

    Hi Govind, there is one query about gratuity that if employee completes its 5 year of tenure which includes 6 months of leave period also then he would be eligible for claim or not. please educate.
    regards
    Upma

    • govindsinghnegi August 3, 2014 9:55 am  Reply

      Dear Upma,

      Employee will be eligible for gratuity

  72. Durga Prasad July 18, 2014 8:36 am  Reply

    Dear Mr.Negi,

    if an outsourced employee is under X vendor’s payroll for 4 years and then transferred to another vendor Y’s payroll for same Principal employer. working for another 3 years. what about his Gratuity? if he can claim or not , pls advise.

    • govindsinghnegi August 3, 2014 9:56 am  Reply

      Dear Durga,

      Technically he is not eligible for gratuity.

  73. Madeshwaran July 23, 2014 11:57 am  Reply

    Sir,

    I have worked in a concern as office manager for 18 years.
    After 18 years, the have asked me to leave the service since they are changing their nature of job.

    What is my gratuity Eligibility ?

    a) 18 X 15 days / 26 days salary ( basic + da)
    b) 18 X 30 days / 26 days salary ( basic + da + special allowance etc…)
    c) 15* X 30 days / 26 days salary ( basic + da + special allowance etc…)
    Kindly confirm.

    My friend told I will be eligible for full salary (30 days / year ) since I have worked 10+ years

    My basic 20,000 + DA 0 + Other allowances 30,000 = 50,000.
    (To make their accounting easy, they made only basic salary + Other allowance!! No break up for DA, HRA…)

    Kindly guide me.

    • govindsinghnegi August 3, 2014 9:58 am  Reply

      Dear Friend,

      Gratuity is paid on Basic + DA. If there is no DA in your salary component then you will be paid based on your Basic

  74. Divya July 24, 2014 10:38 am  Reply

    Hi,

    I joined XYZ company as a trainee on contract on 19th Oct 2009. On 7th June 2010, I became a permanent employee. My last working day here will be 5th Sept 2014. Am I eligible for gratuity? My company’s policy on gratuity says 4 years 240 days. I’m confused.

    • govindsinghnegi August 3, 2014 9:59 am  Reply

      Dear Divya,

      Your tenure when you was trainee with the company will also be considered while checking your eligibility for gratuity. Please do rest of the caculation

  75. Ravi July 25, 2014 6:06 am  Reply

    I worked for a company 3 years from 2008 to 2011 and resigned in 20111,rejoined again in 2012.Will i eligible for gratuity as iam completed 5 years in one company?

    • govindsinghnegi August 3, 2014 10:00 am  Reply

      Dear Ravi,

      As there was a break in your service. Your tenure earlier with the company will not be considered.

      If you complete 5 years after re joining then you become eligible

  76. pritilovekesh July 28, 2014 9:57 am  Reply

    Can LWPs be considered during 5 years time period. for example, I have joined my company on 26/08/09. I put my resignation on 24/07/14. I will be relieved on 24/09/14. during this time period I was on 92 LWPs due to some diverse situations. Will I be liable to get gratuity from my company?

    • govindsinghnegi August 3, 2014 10:01 am  Reply

      Dear Friend,

      LWP will be considered

  77. pritilovekesh August 4, 2014 4:33 am  Reply

    Dear Sir,
    Will you please let me inform in which situation LWP will be considered. I mean, in the consideration of total 5 years or to be liable for gratutity?

    • govindsinghnegi November 9, 2014 6:05 am  Reply

      Dear Friend,

      It will be considered for your eligibility for gratuity

  78. Anonymous August 7, 2014 9:24 am  Reply

    Dear Sir,
    I worked in a XYZ company for 4.7years. WHen i resigned i was 4.6 years and had to serve 2months.But I discussed with HR n they confirmed 4.6yrs is eligibility for gratuity.So i got relieved early in 4.7yrs.After 4 months when i mail they say i am not eligible.Plz let me know is there any option to recieve amount ?

    • govindsinghnegi November 9, 2014 6:07 am  Reply

      Dear Friend,

      To be eligible for gratuity one should complete 5 years on last working day. In case you have not completed 5 years, hence not eligible for the same.

  79. CSM RAJ August 14, 2014 12:06 am  Reply

    Dear sir, I worked in an organisation on contract basis continuously for 6 years plus without any break.Am I entitled for Gratuity or not as per the Rules. I would be highly obliged for your clarification on this. REGARDS- CSM RAJ.

    • Dinesh Prasad September 30, 2014 7:18 am  Reply

      Hi
      you are entitled for gratuity

    • govindsinghnegi November 9, 2014 6:10 am  Reply

      Dear Raj,

      You are very much eligible for Gratuity. It has nothing to do with you being on contractual roles.

  80. saritapareek August 20, 2014 8:09 am  Reply

    Hello Sir,
    You said that LWP will be considered means what now these 92 days will be deducted from total working days?

    • govindsinghnegi November 9, 2014 6:12 am  Reply

      Dear Sarita, I mean LWP will be considered while calculating eligibility of an employee for gratuity.

  81. Rohan Kumar August 23, 2014 6:59 am  Reply

    Dear Sir,
    I have worked in ABC organization for 8 yrs 1 months with valid appointment letter after that they transferred myself to the ( with only a transfer order , no separate appointment letter) Head Office of the same organization from where I had resigned after working for another 4 months. My question is whom I apply for gratuity ? To the head of ABC company or the head office ?

    • govindsinghnegi November 9, 2014 6:15 am  Reply

      Dear Rohan,

      You should apply to the company from where you have resigned i.e. Head Office. You will be eligible for 12 years gratuity in total.

  82. Raj August 24, 2014 4:19 pm  Reply

    Hi Govind

    My company has paid me the gratuity, but they have not considered the last 3 years I spent at onsite. They say onsite period is not considered for years of service calculation. I’m not sure whether this is as per law or if it is company policy. When I was at onsite, I was still working for the same company, my employee id was the same, but I wasn’t getting any Indian salary. Could you please be able to clarify?

    Thanks

    • govindsinghnegi November 9, 2014 6:18 am  Reply

      Dear Raj,

      From where you have resigned. From onsite on in India? Also request you to go our forum http://www.hrsuccesstalk.com/forum and search. There are many such queries and you will be able to find your answer.

  83. Jagdeep Singh August 29, 2014 7:38 am  Reply

    Respected Sir,,
    I worked in a Company from October, 2003 and left in April, 2008 . Again i rejoined the same company in 1 March, 2009 and again left in 30 May 2014. Am i eligible for Gratuity Please suggest me. Sir Company told me you are not eligible for Gratuity.

    • govindsinghnegi November 9, 2014 6:20 am  Reply

      Dear Jagdeep,

      You are not eligible for gratuity. Although you have completed 5 years of service but it is not continuous.

  84. Soura September 4, 2014 12:46 pm  Reply

    If a company gets shut down or has to close down the complete division , are the employees less than 5 years eligible for the gratuity and pension ?

    • govindsinghnegi November 9, 2014 6:22 am  Reply

      Dear Soura,

      If the reason of shut down is valid then employees are not eligible for gratuity.

  85. G S Gupta September 11, 2014 12:00 pm  Reply

    Dear Sir,
    Please clarify if a retired person is given an employment after his retirement from another company which had paid all his dues including the gratuity etc. The person works for 19 years in another firm after super annuating from the previous firm . Will he be entitled to Gratuity in the second firm which he joined ?

    GSgupta

    • govindsinghnegi November 9, 2014 6:24 am  Reply

      Dear Mr Gupta,

      Yes you are eligible for gratuity in second firm as well.

  86. Manohar September 22, 2014 1:10 pm  Reply

    I worked in Company ABC in Mumbai (Maharastra) for 3.5 years, but as a business realignment plan of company management, I resigned from ABC and joined Company XYZ in Gurgaon (Haryana) and currently working with XYZ from last 2 years. I received relieving letter from ABC and new joining letter from XYZ. In this case, Am I entitle for gratuity?, being both the companies are subsidiaries of Company EFG (Under same management)
    Please advise me on this.

    • govindsinghnegi November 9, 2014 6:32 am  Reply

      Dear Manohar,

      Please check there should be on gap between your resigning and joining new company under same management. Second, management of company should be same.

      If both conditions are true then you are eligible for gratuity.

  87. Pintoo Kumar September 23, 2014 10:46 am  Reply

    Hello sir,
    I am working with XYZ company on a payroll of other company(Third party Payroll), am i eligible for all the benifets, like:- Compensatory leave, medical benift and other benefit. The company through which i am placed deduct my PF, Gratuity and ESIC amount but he said you are not eligible for any sort of leave

    • govindsinghnegi November 9, 2014 6:46 am  Reply

      Dear Pintoo,

      You are eligible for all statutory benefits. Some benefits which are provided by company to its own employee is not necessary extended to contractual employees.

  88. Anup September 24, 2014 3:22 am  Reply

    Hello Sir,

    I have completed 6.5 years in a company. After completing first 3.5 years in India for this company. I went to USA for 3 years from same company. I came back after 3 years and now I have resigned this company. Will I be able to get gratuity.

    Thanks
    Anup

  89. Gaurav Saluja September 28, 2014 3:45 am  Reply

    I would like to have an update on the gratuity payment, as my father resigned the reputed private company at the age of 72 where he served for 22 years. As per act , Is he eligible to receive the amount based on his total tenure of 22 years or till the age of 58. Appreciate immediate reply on this.

    • govindsinghnegi November 9, 2014 7:02 am  Reply

      Dear Garuav, Till his service but a maximum of Rs 10 Lacs

  90. V. Fredrick Paul October 4, 2014 6:17 am  Reply

    Dear sir,
    I appreciate the way you answered the queries. Thanks a lot for helping people in this way.

    In our school, as for now, there are 11 people who have finished their 5 year service.
    In my understanding, when somebody leaves the school, gratuity should be paid to them.

    For others, those who are continuing in the service, I don’t understand what should be done. Please clarify my doubts.

    (1) I have read somewhere that the liabilities for the payment of gratuity be contributed to an irrevocable Gratuity Trust Fund.

    It means, I assume that that the gratuity be paid at the end of every year to a bank account, after the completion of 5 year service and the same should be credit to the employee when he/she leaves the school.

    But, when I searched in the forums, no where I found any mention of Trust Fund. All experts were advising only about paying the gratuity.

    My question is should I start contributing gratuity from now itself for those who are still in service or should I pay gratuity only to those leave the school and not worry about others who are still in service.

    (2) I also have read about LIC Group Gratuity scheme. Ours is a school that is in the process of getting established. It is serving the lower middle class kids and is situated in rural area. Desiring to be an example for kids to follow, we want to comply with the rules and regulations of our nation, but at the same time struggling to pay good salary, we also want to keep our liabilities in the minimum.

    Please advise us, which is better (a) paying gratuity when they retire, (b) contributing to the Gratuity Trust Fund or (c) LIC Group Gratuity scheme?

    Thank you,
    V. Fredrick Paul.

    • govindsinghnegi November 9, 2014 7:06 am  Reply

      Dear Mr Paul,

      You can either go for pay when an employee retire or LIC Group Gratuity Scheme.

  91. V. Fredrick Paul October 12, 2014 11:25 am  Reply

    Dear sir,
    If you can guide us even in few sentences, it would be of great help.
    Thank you.

    V. Fredrick Paul

  92. Jignesh October 15, 2014 2:14 pm  Reply

    I had join my company on 20 nov 2009 and left it on 15 oct2014 so can i apply for gratuity.

    Regards
    Jignesh

    • govindsinghnegi November 9, 2014 2:10 pm  Reply

      Dear Jignesh,

      As you have not completed 5 years, you are not eligible for gratuity

  93. Tarun Agrawal October 17, 2014 12:57 pm  Reply

    Hi there,

    I want to know, what happens to the money which remains unclaimed towards gratuity once a person leaves the organisation before completion of 5 years. As this money was part of individuals’ CTC, does this money remain with the employer or with some government account towards unclaimed gratuity amount?

    • govindsinghnegi November 9, 2014 2:12 pm  Reply

      Dear Tarun,

      Gratuity is employer’s liability. Yes, I agree that most of companies make it part of employee CTC. If an employee leaves the organization before completion of 5 years then this money is not paid to employee.

      Please under component like gratuity which is part of CTC can not be claimed by employee.

  94. dheeraj October 21, 2014 10:41 am  Reply

    Dear Govind

    I have worked 7 years and 1 month with Speciality restaurants limited. I have resigned 2 months back, i have not got bonus and gratuity. only Rs.2500 has been given as Exgratia. I asked the HR that when will I get my bonus and Gratuity but Company is not replying to my mails.
    What should i do?
    Please advice.

    • govindsinghnegi November 9, 2014 2:14 pm  Reply

      Dear Dheeraj,

      Simply, send a letter to employer through registered post mentioning about your employment and Gratuity and Bonus law. Ask for claim of gratuity and bonus.

      Let us know the response of the employer. We will suggest next course of action

  95. milu October 23, 2014 5:05 am  Reply

    Hello Sir
    I had worked with a company for 4 years continuously in one contract post with a particular salary. Then I got a another new contract post with better salary in the same company and worked in the post for another 1.5 years. This company had relieved me from the earlier post to join the new post without any break. Now I resigned from the company. Am I eligible for gratuity since I worked for the company for a total of 5.5 years?? The company says that since I worked on two different posts in the total duration of service I will not be eligible for gratuity. Kindly clarify..

    • govindsinghnegi November 9, 2014 2:19 pm  Reply

      Dear Milu,

      If by new post you mean new designation then you are very much eligible for gratuity.

      Also, please let us know whether there was any break in taking up new assignment.

      • milu November 10, 2014 5:01 am  Reply

        Sir, thanks for the reply.
        I joined the new designation/post by attending an interview against a job advertisement of the same company. I joined the new post without any break. Will I be eligible for gratuity?

  96. M.ELAVAZHAGAN October 23, 2014 8:40 am  Reply

    Dear Sirs,

    An employee of my company worked 20 years. but he left the company 3 times & went to middle east, each time about 1 year educate me ,whether i have to pay gratuity for the 20 years?, or the years in which he joined last time.

    M.ELAVAZHAGAN

    • govindsinghnegi November 9, 2014 2:21 pm  Reply

      Dear Friend,

      You only need to pay him for the period when he worked for more than 5 years in your company not for 20 years.

  97. Harshal October 30, 2014 4:51 am  Reply

    Dear Sir

    I worked in XYZ company for four years now that company is shifting to other place, where i am not wishing to go,so i have resigned that job. In this case can i claim my gratuity?????

  98. Jo November 8, 2014 4:11 am  Reply

    Hello,
    Greetings!
    Will I be eligible for gratuity if I worked for 4 years and 7 months?

    • govindsinghnegi November 9, 2014 2:23 pm  Reply

      Dear Jo,

      You are not eligible for gratuity as you have not completed 5 years of continuous service

  99. govindsinghnegi November 9, 2014 6:39 am  Reply

    Dear Pintoo,

    You are eligible for all statutory benefits. Some benefits which are provided by company to its own employee is not necessary extended to contractual employees.

  100. govindsinghnegi November 9, 2014 6:50 am  Reply

    Dear Anup,

    Yes, you are eligible for gratuity. Please visit our forum http://www.hrsuccesstalk.com/forum and search. you will find alike queries

  101. govindsinghnegi November 9, 2014 2:22 pm  Reply

    Dear Harshal,

    You are not eligible for gratuity as you have not completed 5 years of continuous service whatever is the reason

  102. Hannah November 10, 2014 6:03 pm  Reply

    Hi sir,

    I have worked in an organization for 4 yrs 6 months and 21 days in consolidated pay.Lately i resigned the post to join the same organization under new designation which was on grade pay by attending an interview against a job advertisement of the same organization.
    The organization insisted on taking at least 3 days break and i took them as to fall on Friday through Sunday and joined back on Monday.

    In my relieving letter from the contract post it was mentioned that i relieved from the post to join the organization under new designation.

    Now I resigned from the organization. Am I eligible for gratuity since I worked for the organization for a total of 7+ years?
    The organization says I will not be eligible for gratuity as the service falls under consolidated and grade pay categories under two different employee IDs. Kindly clarify..

    • govindsinghnegi November 12, 2014 2:22 pm  Reply

      Dear Hannah

      I am afraid you wont be able to claim your gratuity. While saying so, i still feel that you should get your gratuity as you have served the same organization for more than 5 years.

      I somewhere feel that if you take this matter to court you should be awarded gratuity.

  103. Dhanu November 11, 2014 12:03 pm  Reply

    My father in law worked in a central organization for over 25 years and he passed a way last month.but when we went to find out the details of his gratuity and other info,we were told that he did not sign on the gratuity form ,so he will not be getting his gratuity amount..can you tell me if this is correct? i mean is there some thing like this where we need to sign?if so,is there a way how we can get this amount?

    • govindsinghnegi November 12, 2014 2:53 pm  Reply

      Dear Dhanu,

      It is also employer’s fault of not getting such forms signed. It is employer responsibility too and employer can not run away from its mistake.

      Please approach managing director of the company with your grievance.

      Do let us know, what happened?

  104. Dhanu November 11, 2014 12:48 pm  Reply

    it seems he forgot sign in the nominee form..so could you tell me the procedure?

  105. raghu vamsi m December 11, 2014 4:54 am  Reply

    Dear Sir,

    In a company an employee has worked for 16 yrs in total, but the employer has deducted 3 yrs from the completed years of service stating the employee was not in service for those years. the employee was not paid any salary for the 3 absent years.

    Actually the employee is a worker, such absentees are very common, the employees will be absent for some months and then they join back.

    whether the company is right in dedcuting the contionous year of service, IF yes how and if No why.

    It would be helpfull if you provide me with any relevant case laws or citing the sections of the act.

    Thank you,
    Raghu Vamsi

  106. raghu vamsi m December 12, 2014 5:34 am  Reply

    Dear Govind,

    A worker worked for a company for a period of 11 yrs (Date of Joining to last date of working), the company took is completed years of service as 7 stating he has not orked for 240 man days in the rest of the 4 yrs, is it valid on the part of the company to do so.

    And what shall be the last day, is it the date of relieving or last date of working, that is in case of workers, they stop coming to the job suddenly and the relieving process takes after some time, so what date shall be considered as the last date of working.

    Kindly reply.

    THanks and regards,
    Raghu Vamsi.

  107. vijaybandaru December 18, 2014 9:54 am  Reply

    Dear Govind,

    I worked for a company for more than 13 years. I was taken as a fresher as a consultant. At that time as I was fresher I do not know much about employee or consultant. I worked as a consultant for more than 10 years and just before 2.5 years of leaving the organization they converted me as an Employee. At the time of relieving they told that I am not eligible for Gratuity because as employee my tenure is only 2.5 years. I never asked them to make me consultant at the beginning and also when I was converted all decisions they only made. So is there any way I can get gratuity now? Please note I left the organization 2.5 years and working for other organization since 2.5 years.

    • govindsinghnegi December 28, 2014 2:35 pm  Reply

      Dear Vijay,

      A consultant is not eligible for gratuity.

  108. Arwin December 19, 2014 10:15 am  Reply

    Hi All, We currently follow the condition set by the PF department and calculate the Basic as Rs. 15000/- per month and PF is 12% of the basic. Due to this employees on salary bands higher than 40000 per month tend to lose out on the HRA tax exemption which would be higher if the Basic is calculated at 50% of gross and also have lower PF accumulated (also leading to lower 80C benefits). If the company increases the Basic its liability increases on Gratuity as well. As an employee I feel I pay more in taxes because of this structure. Will it possible for me to give a declaration to my company stating that I will not claim gratuity and instead ask for my basic % to be increased? Is this legally doable from the company side? Is this info available on any government website? All help is appreciated.

    • govindsinghnegi December 28, 2014 2:33 pm  Reply

      Dear Arwin,

      I think you have considered a wrong compensation policy. Here is my suggestion which will help you to achieve your desired result.

      You can keep Basic as 50% of Gross and limit PF contribution on 15K. PF does not force employer to contribute on Basic above 15K.

      Hope this will solve your problem.

  109. Subhash Ghosh December 23, 2014 3:40 pm  Reply

    Payment of Gratuity Act substituted by Act No.47of 2009 w.e.f.03.04.1997 teachers were also included and maximum ceiling was 3,50000/= if any teacher retired after 1997 and her full gratuity calculated 4,80000/= whether she can claim balance gratuity after 2010 when the Ceiling amount enhance to ten lakhs and entitled for claiming interest.

    • govindsinghnegi December 28, 2014 2:30 pm  Reply

      Dear Subhash,

      Any change in any act applicable from a date and not from back date. Hence if you have retired before gratuity limit was increased to 10Lacs, you can not claim the balance now.

  110. ask21 December 24, 2014 10:49 am  Reply

    Hi Govind,
    I am bit confused about the Gratuity act. I believe Gratuity is government policy then how it is possible that some companies are giving gratuity on the completion of 4 year 240 days and some are on the completion of 5 years. In my case I had worked in a company for 4 years 255 days ( 5 days working). One of my friend who was in different company also worked almost same period in that company. He got Gratuity without any hassle from his company and mine gratuity is denied on the basis of not completion of 5 years. it is very confusing.
    On internet i found that even experts are not very sure. Many of them are saying 4 year 240 days of continuous service is sufficient for Gratuity eligibility.

    I need your advice in my case and if I am eligible then how should i proceed. Any time limit to get the or raise the request for Gratuity?

    Thanks
    Aks

    • govindsinghnegi December 28, 2014 2:27 pm  Reply

      Dear Ask21,

      Gratuity is payable only when an employee completes 5 years and not before that.

      Only in state of Channai employee who completes 4 years and 240 days are eligible for gratuity and in rest India it is not applicable.

      A company which is not in Chennai can make policy to pay policy in 4 years and 240 days.

  111. PRACHI GUPTA December 31, 2014 11:06 am  Reply

    I AM WORKING IN A BANK FOR 18 YEARS AND 3 MONTH MY BASIC IS 17970/= AND D.A. IS 19731, MY GROSS SALARY IS 42193.56. HOW MUCH GRATUITY I WILL GET AFTER LEAVING MY JOB. MY EMPLOYER ARE GOING TO REDUCE SALARY OF ALL EMPLOYEES UPTO 25 PERCENT THEN IT WILL AFFECT OUR GRATUITY. WHAT SHOULD I DO PLEASE GUIDE ME

    • govindsinghnegi January 14, 2015 4:22 pm  Reply

      Gratuity is paid on Basic + DA. you can calculate it as (Basic+DA) * 4.81% * number of months completed in the company

      • Hanspal Bagade January 28, 2015 9:41 am  Reply

        My last salary was Rs 62500 / month. But the management keep basic only
        Rs 6500 and no DA for the less contribution for PF. I had completed 6 years and left the job. How much Gratuity I have to claim ? Pl guide.

        • govindsinghnegi February 15, 2015 2:22 pm  Reply

          Dear Hanspal,

          You will get the gratuity based on your Basic Salary.

          Formula : 6500 * 4.81% * 72

  112. priti Gaikwad January 1, 2015 5:48 am  Reply

    Dear Sir,

    Employee Left the Organisation without Notice, He/she is applicable for gratuity??

    • govindsinghnegi January 14, 2015 4:23 pm  Reply

      Dear Priti,

      employee is still applicable for gratuity

  113. Madhavi Akula January 5, 2015 7:26 am  Reply

    Hi…

    Would you please clarify my doubt reg. Gratuity ? Have joined in a Pvt. Company on 15th Feb 2010 & will resign on 20th Jan 2015.. and will serve the notice period of 30 days (inclusive of notice period)..will I be get the gratuity? please mail me…madhaviakula7@gmail.com

    • govindsinghnegi January 14, 2015 4:25 pm  Reply

      Dear Madhavi,

      for the purpose of gratuity eligibility….DOJ and DOL will be considered and no link with DOR.

      If you complete 5 years on your last working day then you are eligible.

  114. Ghame Negi January 7, 2015 7:26 am  Reply

    Hi Govind,
    I am working in a school and have completed 5 years of service but in my appointment letter nothing has bee mentioned about Gratuity. Will I be eligible for Gratuity in that case…

    • govindsinghnegi January 14, 2015 4:26 pm  Reply

      Dear Mr Negi,

      Irrespective whether gratuity clause is mentioned in appointment letter, you are eligible for gratuity in case you completes 5 years

  115. Rajat January 15, 2015 9:27 am  Reply

    Heloo sir ,
    I have completed 5 years on 10th jan,2015 .however in the month of July 2014 I had resigned and served one month notice but taken back my resignation . My leaves (cl , el etc )and everything continued as earlier. It was a continuation of service ,am I eligible for gratuity ?

    • govindsinghnegi January 25, 2015 5:31 am  Reply

      Dear Rajat,

      If you have not left the company irrespective of your resignation and withdrawal, you are eligible for gratuity.

  116. Sumit January 28, 2015 8:56 am  Reply

    Hi,

    I have two questions for you.

    First, can companies calculate gratuity on gross salary i.e, basic plus allowances as this will be generous than minimum requirement.

    Second, can companies put higher cap limit than 1Million? thank you.

    • govindsinghnegi February 15, 2015 2:23 pm  Reply

      Dear Sumit,

      Company may decide to give gratuity based on gross salary. Law does not restrict company for paying higher gratuity.

      Company may also give gratuity to any limit but income tax rebate will be till 10 Lakhs.

  117. GS Joshi January 31, 2015 12:42 pm  Reply

    Dear Sir,

    I am looking after accounts of 3 Individual firms (Which are belong to Father, mother and son) They combined have more than 10 employees but individually has less than 10 employees.I am getting salary from 3 firms. Can I claim the gratuaty ?

    • govindsinghnegi February 15, 2015 2:19 pm  Reply

      Dear Mr Joshi,

      Are these three companies linked to each other by some or other way?

  118. poonam February 5, 2015 10:28 am  Reply

    As an employee i have under a parent company for 3 yrs and then was transferred to sister concern as new project required my assistance.which is still going since 2 yrs approx. so will i be eligible for the gratuity for combined services or not

    • govindsinghnegi February 15, 2015 2:15 pm  Reply

      Dear Poonam

      Yes you are eligible for gratuity.

  119. sam ahmad February 13, 2015 1:45 am  Reply

    Hi Govind.
    I was working for one organisation in Mumbai in around 2006-2007. It was a NGO i dont want to name. I had worked continuously for 13months including the probation period and then I resigned and I didnt ask the company for gratuity as nothing was mentioned about gratuity in the offer letter. It was my immaturity that i didnt ask. Now when i am reading these articles i feel sad and I will be thankful to you if you can tell me whether I can claim my gratuity now after 9years. The company still exists. Please reply. Thanks.

    • govindsinghnegi February 15, 2015 2:14 pm  Reply

      Dear Sam,

      You have only completed 13 months not 5 years hence you are anyways not entitled for any gratuity.

      • sam ahmad February 15, 2015 7:03 pm  Reply

        thanks Govind for your reply. But I read somewhere that completing 240days of service entitles a person for gratuity even if he has not worked for that organisation for 5years. is it true? please guide me.

        • govindsinghnegi February 21, 2015 5:18 am  Reply

          Dear Mr Ahmad,

          It is not true. The clause you are mentioning was a verdict given by High Court -Chennai and it says that if an employee has completed 4 years and 240 days in 5th year then the employee is eligible for gratutiy.

          An employee completed 240 days will not be entitled for gratuity

          • sam ahmad February 23, 2015 9:31 pm  Reply

            Govind,.Thanks once again for your quick reply.

  120. Kiran Dere February 14, 2015 12:45 pm  Reply

    I just want to know whether a third party pay roll employee has completed 5 years in an organisation, in which he was on third party pay roll, will he be eligible for gratuity ?

    • govindsinghnegi February 15, 2015 2:12 pm  Reply

      Dear Kiran,

      If employee has completed 5 years under a single contractor then he is eligible for gratuity.

  121. Rahul Salve February 16, 2015 5:38 pm  Reply

    I have completed 5 years in a company and given a letter to get gratuity, but they are ignoring what should I do

    • govindsinghnegi February 21, 2015 5:20 am  Reply

      Dear Rahul,

      You should meet them personally and try to find out the reason. If you are not satisfied with the reason and feel that they are giving an excuse, you should send them a letter through registered post with AD mentioning about your employment with the company and asking for payment of gratuity under law.

      In case they do not revert, send another letter with registered post and AD, give reference of first letter and do mention that in case they do not give gratuity then you are forced to approach labour court for this.

      Do let me know what happens after that.

  122. Shailendra Gupta February 25, 2015 6:36 am  Reply

    Recently our company, which was established in Oct 2010, is taken over by another company. I do not know exact terms and conditions of take over. However, our company with average strength of 18 employees was showing gratuity as part of CTC and deducting the same. Since new company is going to issue fresh appointment letter, can we not ask old company to pay back the accumulated gratuity amount to respective employees ? Or else, all will lose this amount, without their fault, as the new company will start fresh gratuity account..

    • govindsinghnegi March 8, 2015 3:53 pm  Reply

      Dear Shailendra,

      Mostly in case of acquiring a new company, boss company keep account of gratuity of acquired company.

      Hence, you guys will be paid once you complete 5 years combining in both companies.

  123. Ibrahim March 1, 2015 11:39 am  Reply

    Dear Govind, have read on several forums that 4 years, 241 days is minimum period to serve to be eligible for gratuity. While several other forums claim it is 5 years.
    i am planning to quit with at 4 years and 10 🙂 .. hence wondering

    • govindsinghnegi March 8, 2015 4:02 pm  Reply

      Dear Ibrahim,

      You should complete 5 years to claim gratuity.

  124. Deepak March 6, 2015 9:10 am  Reply

    I have been working with a company in last 4 years 4 months 24 days, now my boss and some other employees are forcing to resign or they will terminate me due to some internal disturbance (u can say it’s a corporate). Can I get my gratuity and salary.

    • govindsinghnegi March 8, 2015 4:03 pm  Reply

      You will get the salary but not gratuity

      • Deepak March 8, 2015 4:23 pm  Reply

        Dear Govind,
        Thanks a lot for your reply, please help me with another situation, actually I have been working with a company in last 4 years and 4 months but now I want to leave this company as I am getting better oppertunity but my current company not interested to give me releasing. If am asking for resignation then my boss is saying me that he will terminate me. So please tell me what should I do and how can I join with another company.

  125. MAHESH KUMAR March 7, 2015 4:20 pm  Reply

    DEAR MR GOVIND

    I RESIGNED FROM A COMPANY WITH A BALANCE OF 17 LEAVES.THEY ARE PAYING GRATUITY IN LABOUR COURT BUT CREATING PROBLEM FOR LEAVES SALARY.THEY SAY THAT THIS IS COMPANY`S RULE.

    CAN I CLAIM THAT AMOUNT ALSO OR COMPANY CAN MAKE THESE KIND OF RULE?

    PLEASE HELP

    • govindsinghnegi March 8, 2015 4:06 pm  Reply

      Dear Mahesh,

      Leave encashment is as per State’s Shop and Establishment Act. There are some states where it is compulsory and in other it is not.

      • Sameer April 19, 2015 10:26 pm  Reply

        Dear Mr govind .

        I had 2 casual labourers working for me for about 4 years on daily wages . They were paid the daily wages in cash .

        They left the organisation on pretext of not willing to do the intended work by the manager .

        They have now sent me a letter from a intuc union asking to reappoint them or pay the dues . I don’t want to reappoint them as they may create issues in future

        Are they eligible for gratuity or other benefits . ??

        Will the trade union create issues ??

        Mine is an Ssi company with less than 10 permanent labours .

        Kindly guide what to do ??

        • govindsinghnegi April 22, 2015 11:40 am  Reply

          Dear Sameer,

          As number of employees in your organization is less than 10, they are not eligible for gratuity.

          Trade union may create a problem.

          I would suggest that you should look for outside court settlement.

  126. Sham March 9, 2015 6:38 am  Reply

    If I work for four and half years in a public sector bank and resign to join another public sector bank, whether my period of service in the first bank be reckoned for computation of gratuity payment? Both the banks are classified as “Govt. of India Enterprise”

    • govindsinghnegi April 22, 2015 11:41 am  Reply

      Dear Sham,

      Your work tenure in first Bank will not be considered in second Bank.

  127. Sham March 9, 2015 6:41 am  Reply

    Please ignore my earlier query.
    If I work for four years and nine months in a public sector bank and Resign to join another public sector bank, whether my period of service in the first bank be reckoned for computation of gratuity payment in either of the Banks? Both the banks are classified as “Govt. of India Enterprise”.

    • govindsinghnegi April 22, 2015 11:42 am  Reply

      Dear Sham,

      In this case also you are not eligible for gratuity.

  128. ashish March 11, 2015 5:59 am  Reply

    can an employee transfer his gratuity from one company to another. for example. i worked in ABC company for 10 years and then i resigned and joined another company , i dont want to withdraw my gratuity amount. i want to carry this till my retirement, can i transfer my gratuity to my new organizations . ( one job to second and so on )

    • govindsinghnegi April 22, 2015 11:43 am  Reply

      Dear Ashish

      This is not possible. Gratuity can not be transferred one company to another. You will get your gratuity amount once you leave the first company.

  129. Anita March 11, 2015 10:51 am  Reply

    Dear Govind ji,

    please advise if training (CS Trainee) period is covered in 5 year calculation for gratuity. Else would ask is a CS Trainee considered a apprentice. please reply earliest.

    • govindsinghnegi April 22, 2015 11:44 am  Reply

      Dear Anita,

      Training period is considered for determining eligibility of gratuity.

  130. Raju March 12, 2015 2:08 am  Reply

    I have worked for an organisation as an intern (For my maters degree) for an year from July 7 , 2009 to June 29 , 2010. And in a continued fashion I was converted as a full time Employee on 30th June 2010. Will I get my gratuity now if I leave the company on March 30th ,2015

    • govindsinghnegi April 22, 2015 12:47 pm  Reply

      Dear Raju

      Yes, you are eligible for gratuity

  131. Sulabh Jain March 16, 2015 4:27 am  Reply

    Hello

    I spent 10 months in US as a part of transfer through my company. I again came back to India. Will my 10 months will be count for the gratutity period ?

    Please confirm.

    Regards
    Sulabh Jain

    • govindsinghnegi April 22, 2015 12:48 pm  Reply

      Dear Sulabh,

      Yes, 10 months will be considered, if your full and final is not done yet.

  132. VINOD March 17, 2015 6:14 pm  Reply

    Hi. I joined a company A payroll from 03 Jan 2011. As per company’s global policy they asked us to resign and were made to 3rd party but work for same company A. So i resigned on 30 Jun 2014.
    I was on 3rd party payroll from 01 Jul to 28 Aug 2015. I again moved to payroll of parent company A from 07 Sep 2014. Can u pls guide if i can get service continuity as the break in between was for 2 months. Any rules?
    I am bit depressed. Will i be eligible for gratuity next year?hope u understud scenario?
    Waiting for reply.

    • govindsinghnegi April 22, 2015 12:55 pm  Reply

      Dear Vinod,

      I am afraid that you are not eligible for gratuity

  133. archana March 18, 2015 5:01 am  Reply

    Dear Sir, I am working for a company from 2008 November. I am consultant and confirmed employee. I have a confirmation of my employement too. Am I eligible for Gratuity

    • govindsinghnegi April 22, 2015 2:39 pm  Reply

      Dear Archana,

      I am not able to understand…how can you be a consultant and employee together. Please explain it more.

  134. Sumesh March 20, 2015 2:25 am  Reply

    Sir,

    My wife was working in a Pvt. Hospital in Delhi for last 8 years and now she has resigned. And her salary was spilted into Basic + other Allowance.

    The accounts department has Calculated her gratuity only on Basic. Is this correct. Please help me on this.

    • govindsinghnegi April 22, 2015 2:40 pm  Reply

      Dear Sumesh,

      Gratuity is paid on basic salary. Hence the hospital is correct in doing so.

  135. Nsingh March 20, 2015 5:31 am  Reply

    Hi Govind

    I had a question – An employee joined ABC organization in UK (ABC is headquartered in UK) in 2008 and was transferred to ABC’s India office in 2012. She has now resigned. As she has served only 2.5 years in India, would she be eligible to claim gratuity in India? She is not an Indian national.

    • govindsinghnegi April 22, 2015 2:41 pm  Reply

      Dear N Singh, She will not be eligible for gratuity.

  136. vivek March 21, 2015 1:55 pm  Reply

    Hello Sir,
    i joined company ‘A’ on 03 Jan 2011 and was on their payroll. In between there came a company decision to move the employees of my job role to move to 3rd party payroll as per some global initiative. We were not having any option but to move to 3rd party. Hence I was on company payroll from 03 Jan 2011 to 30 Jun 2014. Then 3rd party payroll from 01 Jul to 28 Aug 2014. During this I got offer in company A itself for a better job profile and again got back to payroll. Hence I am back to payroll of A from 08 Sep 2014. I wish to know about service continuity with company A since a break came with move to 3rd party. I hope you will understand my concern in detail and assist me on this. If this is case I look forward to be eligible for gratuity. Please guide me.
    Thanks

    • govindsinghnegi April 22, 2015 2:43 pm  Reply

      Dear Vivek, you are not eligible for gratuity.

      Your tenure will be considered from 8th September 2014 now

  137. shivakirankumar March 25, 2015 11:35 am  Reply

    Our company is close to aproach 5 years , our salary structure has been changed / reduced basic to (from 60%) to 40% on CTC recently, which basic is considered for gratuity calculation. please help.

    shiva

    • govindsinghnegi April 22, 2015 2:44 pm  Reply

      Dear Shiva,

      Your revised basic salary will be considered for the purpose of gratuity calculation. In this case, decision of company reducing basic salary is not legal. There are many social security schemes which are linked with Basic.

  138. J. C. Guha March 29, 2015 5:26 am  Reply

    I am 65 years old and working with a Pvt. Ltd. Company for last 6 years continuously , can i eligible for gratuity ?

    • govindsinghnegi April 22, 2015 2:45 pm  Reply

      Dear Mr Guha,

      You are eligible for gratuity.

  139. Meenu Yadav April 1, 2015 6:26 am  Reply

    Hi Govind,

    My friend is working in an organisation for past 4 years 9 months. During this period, she has a 3 months LWP due to the extension of her maternity leaves. Will she be eligible for the gratuity if she resigns from an organisation after completion of 5 years. Would that be counted as continuous service for the purpose of calculating the continuous service.

    • govindsinghnegi April 22, 2015 2:46 pm  Reply

      Dear Meena,

      Yes, it will be considered as continuity of services.

  140. mamtha April 8, 2015 7:15 am  Reply

    Dear Members,

    The company in which I am working has 150 employees and our company is registered under PF and ESI but not under PAYMENT OF GRATUITY ACT.

    our company has completed its five years and there are employees who have completed 4 years since my company is not registered under payment of gratuity act

    1.what step should i follow to register it?

    2. Is there any penalty that we will be charged?

    • govindsinghnegi April 22, 2015 2:50 pm  Reply

      Dear Mamtha,

      There is no registration required for gratuity. Any organization which has 10 or more employees on any day in a month falls under gratuity.

      Company become liable to pay gratuity if any employee completes 5 years in continuous

  141. Vishal April 9, 2015 6:30 am  Reply

    if a person has worked for more than 5 years in A Company and another 5 years in B Company. Will he be eligibel to receive gratuity from both A & B

    • govindsinghnegi April 22, 2015 2:51 pm  Reply

      Dear Vishal,

      Yes, employee is eligible to claim gratuity from both the companies.

  142. Shishpal April 9, 2015 11:52 am  Reply

    Mr. Govind,

    Would need an help in case you could highlight the below mentioned note…

    1. How to maintain the gratuity account?
    2. How to get this linked with the insurance company with Gratuity Term Insurance?

    Would appreciate if you could educate me on this..

    Thanks,
    Shishpal

    • govindsinghnegi April 22, 2015 3:00 pm  Reply

      Dear Shishpal,

      1. You can maintain gratuity by creating a Gratuity Trust or simply creating a liability account in your accounts book.

      2. You can approach LIC to look after your gratuity liability.

  143. Ankit April 9, 2015 12:34 pm  Reply

    Hi,

    I joined a company on 7 June 2010, I resigned from the comp on 9th March 2015.
    I am serving notice period and my last working day is 5th June 2015.
    Please let me know if I am eligible for grartuity or not?

    Thanks,
    Ankit

    • govindsinghnegi April 22, 2015 3:02 pm  Reply

      If you extend your date of leaving by one day i.e 6th June 2015 then you become eligible for gratuity else not

      • Ankit April 23, 2015 6:56 am  Reply

        Hi Govind,

        Actually the last date is 6th June, but it happens to be Saturday and is official holiday. Please let us know what can I do here.

        Thanks,
        Ankit Bhardwaj

        • govindsinghnegi April 28, 2015 3:57 pm  Reply

          Dear Ankit,

          Not too sure. I think you have a chance to get eligible for gratuity. I would still suggest if you can keep your last working day as Monday to be sure.

          • Ankit May 1, 2015 5:29 am  Reply

            Many Thanks Govind ji 🙂

  144. vivek April 22, 2015 12:33 pm  Reply

    Hello Sir,
    i joined company ‘A’ on 03 Jan 2011 and was on their payroll. In between there came a company decision to move the employees of my job role to move to 3rd party payroll as per some global initiative. We were not having any option but to move to 3rd party. Hence I was on company payroll from 03 Jan 2011 to 30 Jun 2014. Then 3rd party payroll from 01 Jul to 28 Aug 2014. During this I got offer in company A itself for a better job profile and again got back to payroll. Hence I am back to payroll of A from 08 Sep 2014. I wish to know about service continuity with company A since a break came with move to 3rd party. I hope you will understand my concern in detail and assist me on this. If this is case I look forward to be eligible for gratuity. Please guide me.
    Thanks

    • govindsinghnegi April 22, 2015 3:09 pm  Reply

      Dear Vivek,

      As answered earlier, you are not eligible for gratuity.

  145. Alok Kumar April 24, 2015 11:38 pm  Reply

    Dear Govind Sir,

    Excellent advise….

    Need a legal solution for my case related to gratuity and PF. I have worked more then 8.6 yrs in this organisation. Voluntarily I resigned from my job due to my personal family issue. Now its going to be complete 8 month from my resignation but still I have not received my Gratuity or PF. Details given below …it may be little long because I have explained briefly. kindly go through this and pls show me the proper path..

    Sir, This is to inform you that I was employed in XYZ…LTD (EXP) since Nov 2005. Based on my performance I was rewarded with Promotion and transferred time to time to different places. On last April2013 I got promoted and transferred to Indore. Due to some personal family issue, I have decided to resign from the company on Aug2014.
    I served 36 days notice period out of 60 days. Also send a request letter to my higher Authority/dept to adjust balance notice period from my earned leave. Again this was accepted by verbally and update me that during full and final settlement it will calculate.
    Sir after continuous follow up with my Regional HR team and Corporate HR team they told that it will take more than 1 month to get clearance from all the depts. Like (payroll, hr, finance, audit, etc) and after that only then can do my Full and final settlement. Again after 1 month and several follow up they prepare my Full and final settlement, which was completely wrong and instruct me to deposit a huge amount as e recovery amount. Again I keep on following up with them and highlighted them the error part of the calculation.

    Finally they send me the revised Full and final settlement. Which was correct and also matching as per my calculation. Then I requested them for my Gratuity and PF. They suggested me through mail and phone that first I need to deposit the Full and final settlement amount in corporate bank account (Company bank account details was given by HR and Finance Dept through mail), after that they will proceed for release of my Gratuity and PF, they clearly told me that to release Gratuity it will take maximum 10 days time and for PF it will take 2 month. Also they provided the required application forms like FORM-I, Form 10 C, NIC etc for to retrieve my Gratuity and PF through mail.

    It was already too much delayed, so immediately arranged money from my reliable sources and deposited in the corporate bank Account and also updated HR and Finance Dept through mail by sending scanned copy of deposit slip. And also send all the documents and duly filled application/ forms for to retrieve my gratuity and PF through Speed post (Indian postal Dept.)

    Sir, it’s going to be complete 1 month now they are not responding the mail or phone. Now I feel they are started cheating with me, when I called them, maximum time they are disconnecting the phone and if they talk then simply passing different person’s name in different depts.

    In such case pls guide what to do? Now its going to complete 8 months from my date of resignation. Their such activities gives me and my family a very mental harassments and also getting mentally and financially tortured.
    Pls guide me and help me a legal solution. I am in lots of tense, their such activities create a doubt on my mind.. Whether I can get my Gratuity and PF or not?
    With Regards
    Alok

    • govindsinghnegi April 28, 2015 4:02 pm  Reply

      Dear Alok,

      Please be assured that you will surely get your PF and Gratuity.

      First of all, I want to understand why you have deposited amount in company bank account?

      • Alok April 28, 2015 5:03 pm  Reply

        Dear Sir,

        Thanks for you reply. You are really doing a good job for the society by educating proper knowledge about Gratuity and PF.

        As per your query I want to confirm you that I have taken some staff advance 6 months before my resignation. And 50% I have paid by deducting a particular amount from my salary. Being a responsible person it’s my duty to pay to the company. Initially I request to the HR dept to deduct the balance advance amount from my Gratuity but they refused and instruct me to 1st deposit the balance amount in company account and then they will release my Gratuity n pf. But unfortunate after getting money now they are playing with me and till date my Gratuity n pf money not released. I have given several reminders to them through mail. Now they are not responding.

        Pls advise me for further proceeding. Surely I need your legal advise. Pls guide.

        With Regards
        Alok

        • govindsinghnegi April 30, 2015 2:46 pm  Reply

          Dear Alok,

          You should send a letter to your employer through registered post mentioning about your employment and other details asking them to pay your gratuity.

          Once this is done, do let us know the status.

          • Alok April 30, 2015 2:58 pm  Reply

            Dear Govind Sir,

            Thanks for your advise.
            I will send the letter to the MD and definitely will update you the status.

            Thank you so much.

            With Regards
            Alok

            • govindsinghnegi May 9, 2015 1:14 pm  Reply

              Hope you will get your gratuity

              • Alok May 18, 2015 8:15 am  Reply

                Dear Govind Sir,

                Thanks for your valuable suggestions. As per your guideline I act accordingly and just 2 days back they released my Gratuity and also confirmed through mail about the progress of my PF. Thanks again to you for helping others. Great job sir.. keep it up.

                With Regards
                ALOK

                • govindsinghnegi May 21, 2015 4:29 am  Reply

                  Dear Alok,

                  We are happy to know that.

  146. Suresh April 26, 2015 12:34 pm  Reply

    Extension query of FAQ 23.
    1.I am working “X Pvt Ltd” registered in India for 4.8yrs(for now) and i will be moving to our USA office (before completing 5 years in india) (same company registered as “X Inc” in USA). I’ll be a permanent employee in USA from then and on US payroll. I will be no longer an employee of company X registered in India. Am I eligible for gratuity after completing 5 years combinely (say 4years 9 months in india and 6 months in USA?)

    2.If yes, as managment is same,will i get gratuity after my resignation only in USA?
    Thanks,
    Suresh

    • govindsinghnegi April 28, 2015 4:03 pm  Reply

      Dear Suresh,

      If you have got your full and final from India company before moving to USA then you are not eligible for Gratuity.

  147. Suresh April 26, 2015 12:37 pm  Reply

    Dear Govind,
    Extension query of FAQ 23, I have to resign in india company and will join in USA with fresh offer letter

    • govindsinghnegi April 28, 2015 4:05 pm  Reply

      Dear Suresh,

      As mentioned above, you are not eligible for gratuity in this case. I would suggest that you should speak with your HR and ask for your gratuity based on pro rata based along with your Full and Final. Lets see what they reply?

      • suresh April 28, 2015 4:31 pm  Reply

        Ok.Thanks Govind.But we have same management for india and US firms.
        New Q:
        My wife works for CTS in hyderabad and completed 4.6 years and on Loss of pay leave from now.Will she eligible for Gratuity if resigns before 5 years?(last 6 months no pay and CTS headquarter is in Chennai)?
        Thanks,

        • aalok June 14, 2015 4:40 am  Reply

          Hi Suresh,

          i am having exactly same concern. can you pls update on the reply from your company.
          also Govind sir, i have seen many case like this where resource asked to reallocate to overseas office and they ask to sign resignation letter from India office. Now my question is, as a resource are still loyal to company and working as per company provided directly so are we not suppose to get the accumulated amount collected in India. also do we have any law in gratuity look for case like this which we an refer to our employer.

          Thank you again.

          • aalok June 24, 2015 12:58 am  Reply

            Dear Govind,

            If you can please shade some light. i am sure that will really help to many people as onsite is very common these days.

            Thanks again.

  148. vasundara April 27, 2015 8:33 am  Reply

    Hi Govind,

    I have my friend who worked with “X” firm in India for 3 yrs and now got transferred to “X” firm in UK for a year, she will be back to “X” firm in India after a year. will she be eligible for gratuity and how is her gratuity calculated?

    Thanks,

    • govindsinghnegi April 28, 2015 4:07 pm  Reply

      Dear Vasundara,

      Yes, She will be eligible for gratuity provided she has not put down her papers in any company (India or USA).

      Gratuity will be calculated as per followings:

      Latest Basic x 4.81% x number of months

  149. Deepti May 8, 2015 5:47 pm  Reply

    I joined an institution on july 7,2010. Due to problem in working atmosphere i resigned on 24 april, 2015. I gave 3 months notice period bt the institution without telling me all of a sudden condoned my notice period of 3 months. Am i eligible for 3 months salary n gratuity?

    • govindsinghnegi May 9, 2015 1:13 pm  Reply

      Dear Deepti,

      It depends upon your terms and conditions of appointment. You are requested to share your TnC with us. You should write your query on our forum.

      http://www.hrusccesstalk.com/forum

  150. chhaya May 11, 2015 4:29 am  Reply

    Dear Govind,
    Greetings !!
    I just want to know that having received gratuity from previous company ,can the person rejoin it or not in the capacity of any sr. post or not.

    • govindsinghnegi May 14, 2015 3:32 pm  Reply

      Dear Chhaya,

      An employee can join the same company even after receiving gratuity from the company earlier. Employee needs to again complete 5 years of continuous services to claim gratuity

  151. Preeti May 11, 2015 10:32 am  Reply

    My Date of joining ABC was 1st September 2006, left ABC on 22 May 2011 to join XYZ . Gratuity was not paid during that time as my 5 years were not completed. After merger I came back to ABC on 1st April 2012, as a policy joining date for ABC was given the joining date at XYZ which was 23rd May 2011. So when I left ABC on 22nd May 2011 and Join back on 23rd May 2011, there is continuity in job. Am I eligible for Gratuity from 1st September till 31st May 2015.

    • govindsinghnegi May 14, 2015 3:34 pm  Reply

      Dear Preeti,

      Very unique case. You will not be eligible for gratuity until company policy during merger allow you to claim gratuity.

  152. K K Mishra May 18, 2015 12:13 pm  Reply

    Dear Govind,

    I am working in Company since 2009 where at HO sometimes no. of employees becomes more than 10 and some time below 10 (currently 4 employees at HO). Company had paid gratuity to their previous employees on resignation. Company has manufacturing unit which is on hold operation due to company is making loss. I have resigned and my notice period is going on.
    Whether i can claim for gratuity?
    As company’s position is not even to pay salary at this time (March 15 salary received by me on 14-5-15).

    • govindsinghnegi May 21, 2015 4:41 am  Reply

      Dear Mr Mishra,

      Company is liable to pay your gratuity if you leave the company after completion of continuous 5 years of service.

      You should claim.

  153. aman May 20, 2015 11:47 am  Reply

    My date of joining in “X” company was 28th April 2008, and i left organisation in 21st April 2015, completed 6 years 11 months, employer issued me full and final settlement letter with mentioning gratuity amount, gratuity cheque handed over to me but it got stopped by employer without giving any reason… can you please tell by chance my gratuity amount can be forfeited.

  154. Meghana May 22, 2015 6:24 am  Reply

    Hi I joined ABC Cmpy as Trainee Consultant on 10-Nov-2010, I got permanant in ABC cmpy on 1-Mar-2011, and my last working day in the same company was 5-Jun-2015. Will I be able to claim gratuity.

    If i calculate Trainee consultant Period my exp is 4 yrs 6 months 27 days
    If i doesn’t calculate consulatant period my exp is 4 yrs 3 months 5 days.

    Request you to kindly provide the info regarding gratuity.

    Also can i claim any loyalty bonus.

    • govindsinghnegi June 3, 2015 3:49 am  Reply

      Dear Meghana,

      In any of the case, you have not completed 5 years of continuous services hence you are not eligible for gratuity.

      For your information, please note that your tenure as trainee would have been counted for calculation of gratuity.

  155. rupesh kumar gupta May 23, 2015 5:19 am  Reply

    dear sir,
    i have completed my continuous service in my existing company for 6 year 6 month & 5 day,my question is that if i leave my company as of now then gratuity will be paid by company for 6 years or 7 years

    • govindsinghnegi June 3, 2015 3:50 am  Reply

      Dear Rupesh,

      You will be paid for 7 years. After completion of 5 years, last year is rounded off to 1 year if employee has worked for 6 months or more.

  156. AVNEET KAUR May 27, 2015 8:52 am  Reply

    IF A COMPANY HAS AMENDED THE GRATUITY TRUST DEED AND MINIMUM PERIOD HAS BEEN REDUCED FROM 5 YEARS TO 3 YEARS, NOW IF A PERSON COMES AFTER 3 YEARS WHO HAS SERVED FOR 3 YEARS IN A COMPANY, CAN THE CO. TAKE THE PLEA THAT AS PER LAW HE HAS TO SERVE FOR 3 YEARS.

    • govindsinghnegi June 3, 2015 3:52 am  Reply

      Dear Avneet,

      I am not clear on your query. Please explain more.

      If company has amended the trust deed and reduce the number of years to 3 years for claiming gratuity then any employee who will leave after the amendment and completed 3 years will get the gratutiy

  157. Poonam May 27, 2015 7:28 pm  Reply

    Hi Sir,

    I worked for a company under as a contract employee since June 2007 that is for for 3.5 years. Then the same company migrated me and other contract employees in its permanent rolls. I’ve been working as a permanent employee of the same company since OCT 2010. My last working day is due on 18 Aug 2015. Am I eligible for gratuity?

    Also, while migrating employees to permanent rolls the company had paid out gratuity to several contact employees who had completed 5 years as a contract employee. I was not one of them. Will I lose the gratuity even now?

    Thank You

    • govindsinghnegi June 3, 2015 4:09 am  Reply

      Dear Poonam

      It is a tricky situation. My opinion is if there was not break between while transferring you on permanent rolls, you can ask for gratuity from your employer as the company was the principal employer while you was on contract.

  158. VISHAL THAKUR June 9, 2015 7:55 am  Reply

    Hi Sir,

    Thank you for your guidance. and your blog is a great.

    Sir i have worked in a company for five years and 2 months in a Private ltd firm. But I left the company after I took the salary and did not give notice of 1 month as required by my appointment letter. I left as I was getting a better job.

    Can I still claim gratuity from the company. Please reply sir..

    Thanks

    Vishal

    • govindsinghnegi June 10, 2015 5:02 am  Reply

      Dear Vishal,

      Yes you can still claim the gratuity.

      • Vishal Thakur June 23, 2015 12:28 pm  Reply

        Dear Sir,

        Thank you for the help..Do I have to write a letter to the company for my gratuity or they should send me on their own ?

        Vishal

        • govindsinghnegi June 27, 2015 4:59 pm  Reply

          Ideally company should have paid it by itself. If not, then you should surely write a letter to company

  159. Aby June 9, 2015 9:10 am  Reply

    Dear Govind,

    If somone leaves a company after completion of 4yrs, 11 months & 7 days without any breaks, is he eligible for gratuity ?

    • govindsinghnegi June 10, 2015 5:02 am  Reply

      Hi Aby,

      The person is not eligible for gratuity. Can i know which state this person is working in?

      • Pragnya September 19, 2016 5:57 am  Reply

        Hi,
        As per the Section 2A of Gratuity Act, one can get the gratuity even if he/she does not complete exactly 5 years. This is 5 years of continuous service which is defined under this act. There are 190/240 days rule as applicable to diff. type of companies working under mines,less than 6 day of working in a week. I also have doubt in this, please help to clarify. I had joined on 16th Aug 2011 and my last working day was 29th Apr 2016. Please check this act and let me know if I am eligible for getting the gratuity.

  160. sharath June 19, 2015 6:54 am  Reply

    sir
    My employer denied gratuity because i approached them after 6 years.They say after these many years of gap i cant claim grautity.kindly provide the reference no/case no of high court verdict as mentioned in FAQ 20: It will be very useful for me
    sharath

    • govindsinghnegi June 27, 2015 4:51 pm  Reply

      Dear Sharath,

      It is employer’s responsibility also to pay gratuity to employee with his full and final.

  161. Bunty June 25, 2015 6:39 pm  Reply

    Dear Govind,
    I worked in a company for 6 yrs @ rs 25000 pm and then *shifted* to another dept. after that and the salary is *reduced* to rs 12000. Now I work on the new salary for lets say 2 more years. At the time of leaving my salary is Rs 18000. So total I work for 8 years in the company. Kindly through some light am I eligible for **gratuity on the basis of higher salary for 6 years** and for 2 years at a reduced Rate. Thanks a Lot!

    • govindsinghnegi June 27, 2015 4:55 pm  Reply

      Dear Bunty, it will be on your recent basic and not on the maximum basic you had during your employment

      • subrata June 28, 2015 12:57 pm  Reply

        Everything is right in gratuity act but I am sorry to say that the persons who execute this law I.e labour commissioner are (most ) are purchased by employer. And they linger the process in such a way that the employee fed up and leave the case.

  162. Raghavendra July 1, 2015 11:14 am  Reply

    Dear Govind
    I understand gratuity is the responsibility of employer and he shall pay it as per specified calculation, once the employee completes 5 years of continuous service with his company. In such case, can the gratuity be shown as part of salary and deducted every month ?

    Further, can the employer do away with dearness allowance in the structure, because the gratuity is to be paid on the sum of basic salary + DA ? It is noticed that private companies are not showing any DA in the structure and breaking the salary into basic + some heads called as allowances.

  163. Pragati July 2, 2015 1:55 pm  Reply

    Dear Govind,
    One of my friend is from IT mnc company. She worked for company for 3.5 year in India and then she went to US for same company. And back after 1 year (with no Indian salary). Now she is completing 5 years in same company but with 1 year in US. will she be eligible for gratuity?
    Thanks in advance.

    • govindsinghnegi July 7, 2015 12:28 pm  Reply

      Dear Pragati,

      She will be eligible for gratuity provided there was no full and final before sending her to US company

  164. Karthik July 15, 2015 8:43 pm  Reply

    Hi govind, I joined in xyz organization on sep 23 2010, if my last date is on sep23rd of 2015, then I hope that I’m eligible. Please reply.

    • govindsinghnegi July 16, 2015 7:44 am  Reply

      Dear Karthik

      You are very much eligible for gratuity

  165. KK July 27, 2015 1:21 pm  Reply

    Hi Sir,

    If a person work for X company for 9 months and left the company. He joined back same company after 5 months and continued service 4 years 3 months( after rejoin). Is that person eligible for Gratuity.

    • govindsinghnegi August 1, 2015 7:32 am  Reply

      Dear KK,

      To be eligible for gratuity the first condition is to serve the organization for continuous 5 years. In your case, the service is not continuous hence you will not be eligible for gratuity.

  166. Nagaraj July 28, 2015 11:08 am  Reply

    Hello Govind, I served an organization for 7 years and 4 months. 3 months back I quit the company but haven’t received my gratuity amount yet. When I checked with my employer, they say they have sent my request to LIC and expecting check from them. I was in an impression that gratuity is paid by employer, not sure why LIC has to send the check. Please advise within how many months, after quitting the company, employee is eligible to get the gratuity money.
    Thanks and Regards.

    • govindsinghnegi August 1, 2015 7:34 am  Reply

      Dear Nagaraj,

      It is employer obligation to pay Gratuity to an employee. In your case, your organization has covered gratuity liability through LIC. There is nothing wrong in it. Ideally your gratuity money should have come by now.

      you can wait for some more time.

      • Nagaraja August 4, 2015 7:11 am  Reply

        Thanks for the clarifications Govind.

        With Regards,
        Nagaraj.

  167. Nagaraj July 28, 2015 11:46 am  Reply

    Hi Govind, 3 months back I quit an organization after serving for 7+ years. Recently when I asked them about Gratuity, they told me they are expecting the check from LIC and deposit it to my account after receiving. I was in an impression that Gratuity is paid by employer, not sure why they are expecting check from LIC. Could you please advise what is the time line to get the money credited to us after quitting?

    Thanks and Best Regards.

    • govindsinghnegi August 1, 2015 7:34 am  Reply

      Dear Nagaraj,

      Your query is already been answered.

  168. Amit August 3, 2015 3:10 pm  Reply

    If an employee work in a company for 4years regularly and exit without getting his gratuity benefit and after 3year 9months the employee rejoin the same company and worked for 9years. His the employee eligible to get gratuity benefit of his past service of 4years. If yeas then how

    • govindsinghnegi August 4, 2015 3:52 am  Reply

      Dear Amit,

      No it is not possible to claim gratuity for first 4 years of employment as you have not completed 5 years of continuous employment at that point of time.

  169. Teena September 24, 2015 7:59 am  Reply

    Hi
    I worked in an Organisation from 4 March 2005, till 5 Sep 2015
    (ie, 10 years, 6 months, 1 day)
    I was on loss of pay for 2 months in 2012. (along with my paid maternity leave)

    How many years will be used for gratuity calculation ? Will it be 10 or 11?

    Teena

  170. Ashish September 30, 2015 10:32 am  Reply

    What is the maximum years of service for payment of Gratuity ? What to do in the case where retired employee having years of service are 42 years & 3 months ? Is there any maximum period limit or not e.g. 33 years / 40 years ?

  171. Ashish September 30, 2015 10:33 am  Reply

    What is the maximum years of service for payment of Gratuity ? What to do in the case where retired employee having years of service are 42 years & 3 months ? Is there any maximum period limit or not e.g. 33 years / 40 years ?

    • HR SUCCESS TALK October 2, 2015 4:04 am  Reply

      Dear Ashish,

      For claiming gratuity one should complete 5 years of continuous service in an organization.

      There is no limit to number of years of services but employer is not bound to pay more than Rs 10 Lakhs

  172. Hirdesh Pandey October 3, 2015 7:16 am  Reply

    Am l eleigible for gratuity from my bank if i worked for 7 years and 11 months as per gratuity act, even if bank says that as per bank’s bipartite gratuity provision I can claim gratuity only if I completes 10 years of service. And they have not paid me gratuity on this ground.

    • Hirdesh Pandey October 3, 2015 7:21 am  Reply

      And if there is any court judgement could you please provide me the case details for reference.

    • HR SUCCESS TALK October 17, 2015 4:06 pm  Reply

      Hi Hirdesh,

      I dont have much knowledge about gratuity in Bank. But, I think it is not correct.

  173. karthi October 8, 2015 8:40 am  Reply

    hello sir i have worked in a company for 5y 3 months i have resigned on 10-sep 2015 when i ll get my garduity please

    • HR SUCCESS TALK October 17, 2015 4:07 pm  Reply

      Hi Karthi,

      You will get gratuity with your full and final.

  174. Vidya2k2 October 10, 2015 9:21 am  Reply

    Hi,

    i had worked in a single organization for 9 Years. on which i was out of Indian payroll for 4 years as i travelled to client location. on my settlement, i have been paid gratuity only for 5 years. Is tat 4 years(non indian payroll) wont be considered and thats why its been paid only for 5 years by the company? Please clarify

    • HR SUCCESS TALK October 17, 2015 4:10 pm  Reply

      Hi Vidya,

      Did you get your full and final before moving to Foreign?

      • Vidya2k2 October 19, 2015 7:20 am  Reply

        Hi,

        I have not moved to foreign country. I am in india only after I got my settlement.

  175. ARIF AMEENUDDIN October 12, 2015 9:58 am  Reply

    Dear Sir,

    My company has taken a Project and the Project is completed.. Now the Same company has taken another Project and shifting the Same Manpower to the New Project..

    We have Employees who have already completed 4 Years in this Project.. Whether the company needs to pay Gratuity if the same employee works in the New Project.

    My Management suggest me to terminate the current contract and take them as fresh employee for the new project.. Is it Legal???

    Pls give me your suggestion.

    • HR SUCCESS TALK October 17, 2015 4:13 pm  Reply

      Hi Arif,

      If employees are simply moving from one project to another then there is no need to terminate their service before moving to another.

      Also, you need not to pay them gratuity right now. You should pay them gratuity only when employee leaves the organization and completes 5 years with you irrespective of projects.

      Terminating employees before moving to new project is illegal.

  176. mahesh October 12, 2015 10:34 am  Reply

    is there is any special rule for gratuity to textile mills.

    • HR SUCCESS TALK October 17, 2015 4:13 pm  Reply

      Hi Mahesh,

      Gratuity act is same for textile industry.

  177. Chanddrashekar October 16, 2015 6:13 am  Reply

    I am working in a X pvt ltd company in Bangalore.. i joined 10th Jan 2011 and am planing to leave the job by 10th Nov 2015 that means it will come to 4.10yrs and i have 42 pending leaves also do i eligible for Gratuity.. kindly advise

    • HR SUCCESS TALK October 17, 2015 4:15 pm  Reply

      Dear Chandrashekar,

      You will not be able to claim gratuity as you have not completed your 5 years of service. Leave balance has no role to play while determining eligibility from gratuity.

      • Sudhir November 24, 2015 3:45 pm  Reply

        Hi

        I have a query regarding Eligibility for Gratuity.

        Mr. A joined a company in 2008 when there were only 5 employees in the company and hence Gratuity Act was not applicable. But in 2010 Gratuity Act was made applicable as number of employees increased to 10 in the year 2010.
        Mr.A resigned from the company in 2014. In total Mr. A has worked for 6 years but after the Act was made apllicable on the company only 4 years have passed.
        Whether he is eligible for gratuity or not?
        Thanks

      • Pragnya September 19, 2016 5:52 am  Reply

        Hi,
        But as per the Section 2A of Gratuity Act, one can get the gratuity even if he/she does not complete exactly 5 years. This is 5 years of continuous service which is defined under this act. There are 190/240 days rule as applicable to diff. type of companies working under mines,less than 6 day of working in a week. I also have doubt in this, please help to clarify. I had joined on 16th Aug 2011 and my last working day was 29th Apr 2016. Please check this act and let me know if I am eligible for getting the gratuity.

  178. Ganesh October 31, 2015 1:45 pm  Reply

    Dear Sir
    I have joined in

  179. Ganesh October 31, 2015 1:57 pm  Reply

    Dear sir
    I have joined the company ABC in Mumbai in the month of June 2009. I don’t know the exact date. however I have joined as a fulltime employee and also company asked to me to work regular 8 hours.. and not provided any benefits like PF , ESIC and even not given appointment order…after working 1year there, they have transferred me to the same ABC company but different location..after that I workded there till 17 June 2014. Pls let me know can I cliam gratuity?? I am very confused that initially company not provided appointment letter to me
    and also the exact day of the joining…
    Pls suggest on this…..
    It would be highly appreciated…

    • HR SUCCESS TALK November 30, 2015 4:47 pm  Reply

      Dear Ganesh,

      If you have completed continuous 5 years then you are eligible for gratuity. But you dont have appointment letter from the company hence it is up to company. If company is ethical they should give you gratuity.

  180. Preeti November 24, 2015 6:10 am  Reply

    Company XYZ has been in operations since 2003 and has over 1000 employees. XYZ pays monthly gratuity to its employees calculated @4.81% of ones’s basic. It has not taken any Group Gratuity Scheme from LIC or other Insurance Company.
    Please let us know:-

    (i) Is the practice followed by this company correct?
    (ii) Can any employee post completion of 5 years still claim gratuity, in-spite of the fact that the employee was in receipt of the amount with his/her monthly emoluments and the said amount was not included in computing his/her tax.
    (iii) any legal implication, in case the above practice is violative of the Act ?

    Regards, Preeti J

    • HR SUCCESS TALK November 30, 2015 4:51 pm  Reply

      Hi Preethi,

      We think it is not the right practice. Law ask to pay gratuity only when employee completes 5 years and not before that. If any employer is paying it before then it is employer’s choice.

      Any amount paid to employee every month is considered as part of salary hence an employee can claim gratuity again after completion of 5 years.

      Moreover company is un necessary paying to every employee, even if employee doesnt complete 5 years.

  181. Mayank BAxi December 10, 2015 8:49 am  Reply

    Hi HR SUCCESS TALK TEAM,

    I have gone through the content and found genuinely interesting, which has prompted me to ask question, which is not replied so far. It can be beneficial for others too.

    I left organization ABC in 2008 and got the gratuity as per the prevailing rules. i.e. 3.50 lacs Tax free and 1.00 Lac taxable.

    Now,
    I have joined XYZ company from 2008 and will be getting gratuity in 2017 from this company.

    Can you please elaborate on Income tax provision on this ? Is it Taxable ? Will I get upto 10 lacs. etc…

    rgds.

  182. vikram soni December 10, 2015 6:55 pm  Reply

    Hello Sir I asked you this question sept 11

    Q:-
    I am working in Gurgaon based IT company since Sept 29 2010 and going to leave company on last week of oct 2015.my first 6 months was probation period or contract based job in that period no PF amount was deducted by company.will i get the gratuity or not

    Your answer:-to me
    Govind Negi has left a new comment on the post “13 facts one should know about Gratuity Act in Ind…”:

    Dear Vikram

    For the purpose of gratuity probation period will be considered. PF has no link with gratuity. Hence if you complete 5 years on the day you leave the company including your probation or contractual period you will be eligible for gratuity.

    *********************************************
    Yesterday I got FNF email from my previous company HR but I did not get gratuity amount so drop her email and got below reply can you please share me any government link or any other way to prove that I am right and they have to pay gratuity amount. Also Please let me now the legal way to take gratuity from this company.

    Q;-2.My Date of joining was 29/09/2010 (Attaching my joining letter) as RTT engineer so I worked in company from 29/09/2010 to 23/10/2015 (more than 5 years).so according to Indian law I am eligible for Gratuity. So my Gratuity is pending on Company.
    Answer from my company HR:-. Additionally please note that, that initially you were hired in the company as a Trainee / part time employee with a monthly stipend amount and was treated differently than other Full time employees. Per your performance, as stated in Clause 3 of your attached contractual letter, you were then hired as a FTE on March 30, 2011. Thus, per the norms you were yet to complete the gratuity term of 5 years.

    Thanks,
    Vikram Soni
    9718052629

  183. Mayank Baxi December 11, 2015 9:15 am  Reply

    THIS IS A REPEAT REQUEST TO REPLY MY QUERY>

    Hi HR SUCCESS TALK TEAM,

    I have gone through the content and found genuinely interesting, which has prompted me to ask question, which is not replied so far. It can be beneficial for others too.

    I left organization ABC in 2008 and got the gratuity as per the prevailing rules. i.e. 3.50 lacs Tax free and 1.00 Lac taxable.

    Now,
    I have joined XYZ company from 2008 and will be getting gratuity in 2017 from this company.

    Can you please elaborate on Income tax provision on this ? Is it Taxable ? Will I get upto 10 lacs. etc…

    rgds.

  184. Pradeep Soni December 17, 2015 7:59 am  Reply

    Hello Team,

    Have query on Gratuity act and laws pertaining to that.

    At my last company, I worked for almost 5 years and for which I was eligible for Gratuity. I got the gratuity amount but twist is that organisation’s gratuity team paid that amount twice to me. Now they are sending me letters and forcing me to pay that amount immediately.

    I told & explained them that this was totally gratuity team mistake’s and I was no where involved in it. Now I have taken up Personal Loan (PL) and not in the position to pay the gratuity amount in one go. I have shown them all the PL documents and opted to pay the amount in 48 installments however they haven’t agreed to that and started harassing me through mails and official letters and threating me to take legal action against me.

    I wanted to know that is there any law or any legal actions bound on me due to which I could fall into any sort of trouble or any Police station visits or any sort of legal matters applicable on me?

    Please reply.

    • HR SUCCESS TALK December 25, 2015 3:33 am  Reply

      Dear Pradeep,

      Even if it is HR team’s mistake, it is not ethical for you to not to return the money. I advise you to return the money.

      They are within their rights to go legal in case you dont return the money back.

  185. Yasmeen December 21, 2015 6:06 am  Reply

    Hi, I am completing 5 yrs on 1st Feb but I taken maternity leaves (3 months paid + 4 months unpaid). After 1 year of maternity I took 1 and 1/2 month leaves because of health issue. for this 1& 1/2 leave I got salary slip. Shall I applicable for gratuity on 1st Feb ? Or do I need to work more 6 moths so that i can be eligible for gratuity.

    • HR SUCCESS TALK December 25, 2015 3:37 am  Reply

      Dear Yasmeen,

      You should be eligible for gratuity

  186. Mrs. Moushmi gandhi December 21, 2015 7:04 am  Reply

    To. respected Sir ,
    hello.
    I am Mrs . Moushmi gandhi is working in one organization since last 5 years but coz of some issues i was suspended for 15 days during that 5yrs so can u please help me out …is that i
    am liable to get gratuity from my firm ?please inform in my email address .as i am giving u information that i was joined in my firm 22nd december. 2010 and my 5 yrs will completed tomorrow on 22nd of december 2015 please reply on my email address …

    • HR SUCCESS TALK December 25, 2015 3:39 am  Reply

      Dear Mrs Gandhi,

      If you have completed continuous 5 years with this company then you are eligible gratuity.

  187. Mohit December 26, 2015 11:13 am  Reply

    Hi HR SUCCESS Team,

    I am working in a Telecom giant in Pune. I joined on 26 April-11
    and will be leaving the company on 1 Feb-16. Tenure = 4years 9 months 6 days.

    Am I still eligible for the Gratuity based on the number of working days on last year?
    please guide…

    Thanks
    Mohit

    • HR SUCCESS TALK December 27, 2015 2:59 am  Reply

      Dear Mohit,

      You are not eligible for gratuity as you have not completed continuous 5 years of services.

      • Mohit December 28, 2015 2:46 am  Reply

        Thanks for the answer ….

  188. swati shirke December 30, 2015 4:30 pm  Reply

    Does the Gratuity amount become double after completion of 10 years of service in a same organisation ? Also, if I have completed 9 years 10 months in the same organisation then will I be eligible for this double gratuity amount in the event of me resigning from the company ?

    • HR SUCCESS TALK January 1, 2016 4:12 am  Reply

      Dear Swati,

      Gratuity becomes more in 10 years as compared to 5 years because you get paid for 10 years @ 4.81% of Basic per month.

      You will be eligible for 10 years gratuity after you leaving the company after completion of 9 years 10 months.

  189. Sasikumar January 10, 2016 5:52 pm  Reply

    I worked in India for a consulate. Gratuity statement i used to get from LIC . which means consulate was paying to LIC every year. Now that I came out consulate in 4 years will LIC give it back to consulate? Or what will happen to that money, which I used to receive statement every year until I left the organisation

    • HR SUCCESS TALK January 18, 2016 3:26 pm  Reply

      Dear Sasikumar,

      You will not get your gratuity from LIC until you complete 5 years of continuous service

  190. Anil Goyal January 18, 2016 11:41 am  Reply

    Hi

    Kindly confirm whether i am entitle for gratutiy or not keeping in veiw the following fact.

    I am working in ABC company. I resigned the company after 12 years. Company paid me a gratutiy as per payment of gratuity act..( 15 days salary for each completed year ) Later on I joint the other company under same group of employer and resigned from their after one year and than again join previous company ABC . Now I again completd 6 year of sevice in ABC company. Kindly let know whether I am entilted for Gratuity again from ABC compnay if I resigned the ABCCompany. Thanks Anil Goyal >> My mail ID is anilgoyal1999@gmail.com

    • HR SUCCESS TALK January 18, 2016 3:27 pm  Reply

      Dear Anil,

      Yes you will be entitled for gratuity.

  191. Akanksha January 21, 2016 9:42 am  Reply

    Hi…1).I was working in abc company since 13/04/11 to 11/01/16 can I get my graduity??
    2) if I’ll join abc company again as a new employee on 1/02/16..or left the company in 2017 will I get graduity???
    Plz reply soon

    • HR SUCCESS TALK January 24, 2016 10:06 am  Reply

      Dear Akansha,

      You left ABC company before completing 5 years and then rejoin after a break. In this case, you have to complete 5 years again wef 1st Feb 2016.

      Gratuity is entitled only when someone completes 5 years continuously (without break).

      Team
      HRSUCCESSTALK

  192. Ravi Sharma January 28, 2016 9:26 am  Reply

    I wanted to Know if I am eligible for Gratuity if my company does not had 10 employees in last 12 months but had more than 10 employees on many occassions during my tenure of 7 + Years

  193. Bharat Sharma February 15, 2016 1:27 pm  Reply

    Hi, I joined my previous company on 23/05/2011 and my last working day was 30/12/2015. Basis this, i have completed 4 yrs 7 months and 7 days in my previous company. My previous company has a 5 day week. As per some online research that I have done, I am eligible for gratuity pay out because i have completed more than 190 days in my 5th year (ref Sec.2 A – meaning of continuous service).

    When I claimed gratuity, I was told that it is up-to the company discretion, whether it follows the 5 year rule for gratuity payout or 4.5 yrs or 190 days.

    Please confirm if it is the sole discretion of the company or can i rightfully claim my gratuity since i have completed 4 yrs and 217 days in service continuously.

    Thanks

    • HR SUCCESS TALK February 16, 2016 3:18 pm  Reply

      Dear Bharat,

      You are not eligible for gratuity as per our understanding

  194. Kunal March 1, 2016 7:26 pm  Reply

    Need your opinion on an employee joined our company in 2011, deputed to US parent company in 2012 on US payroll. His salaries and social contributions have been seized in India. He still continues to be an employee of US company.
    Is the above employee eligible for Gratuity payment if he decides to leave the company during his stay in US or after resuming back to India office immediately post joining in India office.

    If yes, what will be the salary on which his Gratuity should to be calculated during resignation.

  195. Akar Parekh March 15, 2016 11:37 am  Reply

    Hi, since gratuity is a benefit to an employee and many employers calculate it as a part of CTC.
    Is it possible that if the employee does not complete 5 years and resigns in 3 years. Can the employer pay the amount collected as gratuity while doing their full n final settlement.

    Thanks

  196. smartw April 11, 2016 2:00 pm  Reply

    Hi, My father worked for a school about 24 years and is retired now. Just wants to know if he is eligible for the gratuity if it was never the part of contract he signed or never deducted form his CTC or the organization never deposited to a certain account.

    • HR SUCCESS TALK April 17, 2016 5:50 am  Reply

      Dear Friend,

      He is eligible for gratuity provided number of employees in the school are 10.

  197. Madhavan April 13, 2016 3:43 am  Reply

    Hi Sir,

    I have joined a company in Chennai on 5th Sep 2011 and my last working will be in company on 6th May 2016 ie including notice period . So I am about to complete 4yrs 8 months in May 2nd 2016.

    I would like to know am I eligible for gratuity?

    Regards
    Madhavan

    • HR SUCCESS TALK April 17, 2016 5:52 am  Reply

      Dear Madhvan,

      If you have completed 240 days in the 5th year then you are eligible for gratuity. How many days in the week are working?

  198. Madhavan April 22, 2016 9:46 am  Reply

    Hi ,

    i am working 5 days in a week. Completing 4yrs 8 months 8days with company including notice period as on May 13th 2016.

  199. Madhavan April 22, 2016 9:48 am  Reply

    HR replied that as per the gratuity act and ASM you need to complete 5years to be eligible for receiving gratuity.

    4.8 months will not be eligible and qualified.

    Please clarify and suggest me on the next step

    Thanks
    madhavan

    • HR SUCCESS TALK June 5, 2016 10:25 am  Reply

      Dear Madhavan,

      You are eligible for gratuity as you have completed 190 days and more in 5th year and you working for a company with 5 days a week working.

  200. usha May 5, 2016 1:04 pm  Reply

    Hi,
    I have a query regarding an employee. Gratuity deductions to be paid by the company are a part of the organization I work for. An employee who has completed 10 years in the previous company says that he cant claim gratuity again in a new company, and thus wouldnt want it to be a part of the CTC, as we do for all our employees. He says that he isnt eligible for gratuity again, and my question, is that though he claims that he has got his gratuity for completing 10 years in his previous employment, does the company have to bear or pay gratuity to him by law?
    Does the company needs to pay once he completes 5 years in the organization, even though he has already got it from the previous co?

    Thanks

    • Rani M May 20, 2016 11:31 am  Reply

      Hi Usha,

      As per the Act, any employee completing minimum 5 years of service in the Organization is eligible for claiming Gratuity. Thus, if a person has worked for more than 1 Organization wherein he has served 5 years or more then gratuity is to be received from all Organizations where he worked.

      Regards,
      Rani M
      HR Manager

    • HR SUCCESS TALK June 5, 2016 10:29 am  Reply

      Dear Usha,

      An employee gets gratuity after completing 5 years of services irrespective of number of companies he worked for.

      In your case, claim by employee is not true.

  201. Poonam May 16, 2016 1:54 pm  Reply

    Hi,

    I have completed 4 years 10 months in xyz company. I am resigning from this company after completion of 4 years 10 months and will be serving notice period of 2 months. Please let m know if i will be eligible for the gratuity. As the total working tenure for me for this company will be 4 years 10 months + 2 months which will be 5 years in total.

    Thank you in advance for your help.

    Regards,
    Poonam

      • Poonam June 6, 2016 6:33 am  Reply

        Thank You.
        ]

  202. Sreeraj May 19, 2016 5:02 pm  Reply

    Hi Sir,
    I am in continuous employment with my company since July 2011. In February 2016, I was transferred to company’s Singapore subsidiary and was in Singapore payroll till May 2016. Now I relocated back to company’s India office and now again running in India payroll. I am planning to resign from the company in June 2016. Am I eligible for gratuity?

  203. Rani M May 20, 2016 10:23 am  Reply

    Dear Rahul Salve,

    An employee joined in Jan 2009 and left in October 2014 but he was on LOP during the last 10 months of his service. For calculating bonus, are we to calculate no.of working days up to December 2013 or up to October 2014. In short, to be paid for 5 years or 6 years?

    Thanking you for your time & valuable inputs in advance.

    Regards,
    Rani M

    • HR SUCCESS TALK June 5, 2016 10:35 am  Reply

      Please post your query on our forum or under relevant blog on Bonus.

  204. bhushan May 23, 2016 6:32 am  Reply

    if someone has been worked with same owner but different companies. Can he or she applicable for gratuity

    • HR SUCCESS TALK June 5, 2016 10:36 am  Reply

      Dear Bhushan,

      It depends whether both companies are linked with each. If both companies are in different nature of business then you are not eligible for gratuity.

  205. raj May 25, 2016 10:35 am  Reply

    Hi,

    I have joined a Company ( AAA- Hyderabad ) on 16-AUG-2011, On 04-Apr-2013 this AAA Company was acquired by a MNC Company ( BBB ). I was there in BBB company till 09-MAR-15.After that, I got internal transfer to another Company ( CCC- Bangalore ) on 10-MAR-15 which was also acquired by the same MNC Company ( BBB ). For 16-AUG-2016, I will be completing 5 years.
    So As per Gratuity Act in India will I get Gratuity or not.

    • HR SUCCESS TALK June 5, 2016 10:37 am  Reply

      Dear Raj,

      You are eligible for gratuity. Keep your documents with you.

  206. Peeku May 26, 2016 11:31 am  Reply

    Hi! I have served my company for continuous 4 years 10 months (including my notice period). On inquiring about the gratuity, HR said we follow complete 5 years criteria as we put gratuity amount in LIC. Is that the right logic? In this case, am I not eligible for gratuity? Please guide.

  207. raj May 30, 2016 7:16 am  Reply

    Hi,

    I have joined a Company ( AAA- Hyderabad ) on 16-AUG-2011, On 04-Apr-2013 this AAA Company was acquired by a MNC Company ( BBB ). I was there in BBB company till 09-MAR-15.After that, I got internal transfer to another Company ( CCC- Bangalore ) on 10-MAR-15 which was also acquired by the same MNC Company ( BBB ).I have not submitted any resignation letter,But they gave me Full and Final amount after one month. For 16-AUG-2016, I will be completing 5 years.
    So As per Gratuity Act in India will I get Gratuity or not.

  208. Kishore June 5, 2016 2:43 pm  Reply

    Dear Sir,
    I have joined the company in Pune and completed my 4years and 9months. Now i have resigned and joined the new organisation. Will i get the Gratuity amount in the Full & Final Settlement??

    • HR SUCCESS TALK June 7, 2016 4:12 am  Reply

      Dear Kishore,

      Yes, you should get the gratuity.

      Is it a 5 days a week working?

  209. Rakesh Bhadoria June 8, 2016 8:49 am  Reply

    I joined company ABC in Jun 2007. ABC is an Associate Company of XYZ. In Jan 2013 I moved to Company XYZ and left XYZ on Oct 31, 2016. This makes my total service as 8 years 4 Months for gratuity eligibility. The management is now saying that Gratuity is not applicable as my position was of a ‘co-promoter’ in company ABC. I was a director in ABC and held minority shares mostly as sweat equity. While moving to XYZ, I resigned from directorship as well and the company asked me to return the share certificates also.

    Can you please let me know if I am eligible for gratuity or not?

    • HR SUCCESS TALK June 9, 2016 3:45 am  Reply

      Dear Rakesh,

      I am afraid you are not eligible for gratuity as you have resigned from first company before completing 5 years.

  210. Mann June 8, 2016 12:11 pm  Reply

    Sir,

    I joined a company in Jan 2005, that time there were only 7 person working. After 2007 company hold more than 10 workers. I releave from company in Jul 2014 that time there were more than 90 person working.

    Please calculate my gratuity amount.
    How many year’s of gratuity I will eligible?

    • HR SUCCESS TALK June 9, 2016 3:47 am  Reply

      Dear Mann,

      You are eligible for gratuity from your date of joining itself. It doesn’t matter whether you were 10 more employees at the time of your joining. Once number of employee reaches 10 or more company is liable to pay gratuity from date of joining of employee

  211. Rakesh Bhadoria June 9, 2016 11:17 am  Reply

    Sir,

    With reference to my query above, I was with Company ABC from Jun 2007 till Dec 2012. The tenure was 5 years 6 Months. Also my tenure with company XYZ was for 2 years 10 Months. Both companies have the same promoters.

    • HR SUCCESS TALK June 12, 2016 2:24 pm  Reply

      Dear Rakesh

      If you were holding position of Director with Salary then you will also be treated as normal employee for Gratuity. Hence applicable for gratuity. As mentioned by you in your earlier query, if you were working as co partner then you are not eligible for gratuity.

  212. saurabh June 10, 2016 8:08 am  Reply

    my company was paying gratuity amount of 30 days salary. now it has transferred its assets to another company whose policy is 15 days salary for gratuity. as a employee can i file a case against company as my gratuity amount is reduced because of this transfer. if possible please refer me some law or case which will help me. thank you.

    • HR SUCCESS TALK June 12, 2016 2:26 pm  Reply

      Dear Saurabh,

      Gratuity Act ask to give 15 days salary for every year completed. If your company was giving 30 days salary for every year completed to its employee and now withdraw the offer, you can not compel your company to still give you as per old policy. You should be happy with 15 days salary for every year completed.

      • saurabh June 13, 2016 4:46 am  Reply

        Thank you so much for the information. can you please refer any act or authority on this provision. It will help me a lot. Thank you in anticipation.

        • saurabh June 13, 2016 5:28 am  Reply

          Section 4 (5) of the gratuity act says “Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer”
          So, now when my company has been transferred to another company, will I get any compensation under Section 25ff of Industrial Disputes act.
          or
          I may get same gratuity amount. If possible please refer some authority or case laws.

          • HR SUCCESS TALK July 23, 2016 5:43 am  Reply

            Dear Saurabh,

            Do you have copy of any agreement which you have with company regarding higher gratuity amount?

  213. RBN July 18, 2016 5:48 am  Reply

    Pls help,

    I could not find this on internet.
    I have worked for A company for 3.5 years, Then resigned and joined B company and worked for 1.5 years and then resigned and joined C company and worked for 3 years and i resigned from here just few days ago am i eligible for gratuity claim. if yes can i claim it before the last day.
    Thanks in advance

    • HR SUCCESS TALK July 23, 2016 5:45 am  Reply

      Dear RBN,

      One should work for 5 years continuously with one company and not with different companies.

      • RBN July 26, 2016 6:11 am  Reply

        ok…
        thanks I guess the gratuity will be settled with my exit in full and final settlement.

      • das August 5, 2016 8:18 pm  Reply

        Dear HR Success team

        I worked in an organisation from 14-10-2009 to 13-10-2014 total five years and in the year 2010 i took authorized loss of pay for 7 days ,so please let me know , whether i am elegible for the gratuty or not

  214. Sandeep August 2, 2016 8:49 am  Reply

    Hi,

    I have joined my current organisation on 14th December 2011 and during my over all tenure I was on medical leave for 4-5 months, now I am leaving this organisation and my last day is 14th August 2016.
    According to Gratuity guidelines gratuity can be claimed only after 4.8 years of service.
    Please suggest if I am eligible for gratuity or not as I was on medical leave for 4-5 months however I will be completing exact 4.8 years with my current organisation.
    Please respond ASAP.

    Regards,
    Sandeep Rawlot

    • HR SUCCESS TALK September 24, 2016 3:25 am  Reply

      Dear Sandeep,

      Are you working in a 5 days or 6 days working company?

  215. pavneet September 7, 2016 1:50 pm  Reply

    hi
    just wanted to know whether deduction of pf is mandatory to avail the benefit of gratuity

    regards
    pavneet

    • HR SUCCESS TALK September 24, 2016 3:27 am  Reply

      Dear Pavneet,

      Gratuity and PF are not independent law and not linked with each other. Hence, there is no need to get registered under PF for gratuity.

      Company should have 10 or more employees in any month in a year.

  216. sarita September 18, 2016 6:50 am  Reply

    hi
    i worked for 8 years in “xyz” company. i joined in 2003 and left the organization in 2011. because of personal constraints i left the company in 2011. company is not paying gratuity for any employee during that time. so, i didn’t claim for it. recently one employee went to court regarding gratuity. so, company decided to pay gratuity for him. by knowing this other eligible employees are also applying for gratuity. my situation is now i rejoined in the same “xyz” company in 2015.(with new appointment letter). now, am i eligible to claim for gratuity for previous 8 years of service.

    • HR SUCCESS TALK September 24, 2016 3:30 am  Reply

      Dear Sarita,

      You are very much eligible for gratuity for previous 8 years.

  217. Nikhil Gupta October 9, 2016 6:37 am  Reply

    Hello,

    I joined an Organization in 2010 and was confirmed in 2011, In 2012 I got an opportunity from a new employer so I resigned from my position, however Co. management decided to retain me by paying me a competitive salary but termed it as “New employment contract”, however there was no paperwork done for the same and I was just given an appraisal letter at that time

    1) My Resignation was not accepted at that time.
    2) I was asked to revoke my resignation.
    3) There was no break in service.
    4) There was no break in salary payout.
    5) FNF was not done at that time
    6) The top management remained the same trough 2010 till 2016

    I continued to work with the organization till 2016, when I finally resigned and FNF was done (without payment of gratuity), now when I am calming the gratuity they are saying that I am not eligible for it as I was re-hired.

    Could you please tell me if I am eligible for Gratuity, also will “New employment” contact be termed as break in service, even though I worked with the same organization for 6 continuous years

    Thanks,
    Nikhil Gupta

    • HR SUCCESS TALK October 15, 2016 5:00 am  Reply

      Dear Nikhil,

      With the information you have provided it looks like you are very much eligible for gratuity.

      Do you get salary slips? If yes what is the date of joining mentioned in your last salary slip? or any other document you have have received recently with your date of joining of year 2011?

  218. Nandhu October 22, 2016 2:33 pm  Reply

    Employer has ” x “company in india, with less than 10 employess. Same ceo has the “x inc” company in USA with more than 50 employees. Payment comes from the “x inc” to “x” then distribute the salary to employees from “x” account. whether the “X” company employees eligible for the gratuity after 5 years?

    • HR SUCCESS TALK December 31, 2016 1:45 pm  Reply

      Hi Nandhu,

      As both the companies are registered in two different countries hence laws are independent which means company in India is not covered under Gratuity Act.

  219. Yogesh November 29, 2016 11:09 am  Reply

    I left Company after working for 10 years with proper notice and on a good note. Company says that they do not have policy of Gratuity. Now if I claim gratuity they will spoil my reference from company I am joining and in future also.

    • HR SUCCESS TALK December 31, 2016 1:56 pm  Reply

      Hi Yogesh,

      You are very much eligible for gratuity provided your company had 10 or more employees at any point of time.

      Although, it is bad on part of employer to threaten employee for bad reference check if he demands gratuity.

      Here is the solution,

      You can be quite till the time your reference check is done. You should also inform your new employers about it.

      You can put a claim for gratuity once your reference check is done.

  220. Dinesh Agarwal December 6, 2016 11:34 am  Reply

    Sir, I have worked with a private company in Assam for a period of 4 yrs and 241 days. they have done F & F without giving me Gratuity. After going through your write up I have claimed for Gratuity and send a email. they are not responding. Plz guide if i have entitled for gratuity how to move ahead to claim gratuity. Thanks in advance.
    Regards

    Dinesh Kr Agarwal

    • HR SUCCESS TALK December 31, 2016 2:11 pm  Reply

      Hi Dinesh,
      Can you please speak with HR and find out whether they have received the letter or not?

      If they have received what is their feedback on it?

  221. Supreetha December 30, 2016 12:50 pm  Reply

    Hi Sir,

    I have 2 queries:-

    A lady employee who has served 5yrs with a company and resigned. During this period she has availed a 6 month maternity break approved by the company. Is she eligible for gratuity?

    My Second query: A company has 10 employees working for more than 5 yrs and thereby not registered for gratuity payment. With the joining of the 11th employee they introduce the Gratuity act. Will the first 10 employees be eligible to get gratuity if any of them resign/retire?
    Also if the gratuity needs to be included in the CTC, do we classsify the first 10 employees under 5+yrs or as new employees in the Gratuity act…?

    Please advise?

    Thanking you!!!
    Supreetha

    • HR SUCCESS TALK December 31, 2016 1:52 pm  Reply

      Hi Supreetha,

      1. Yes, the lady employee is eligible for gratuity.
      2. Yes, first 10 employees will also become eligible for gratuity hence will get the same when leave.
      3. They are eligible for Gratuity irrespective its inclusion in CTC

      • Supreetha January 2, 2017 6:39 am  Reply

        Thank you

  222. Supreetha January 9, 2017 12:07 pm  Reply

    HI Sir,
    We know that the ceiling for Gratuity to an employee is 20,00,000/- INR. What if the employee is eligible for a gratuity amount above this? Do we pay the employee the excess amount also? Or can the amount be compounded to some other payment head?
    How is this usually resolved.
    Regards

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