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 were 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 the 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 the employer through registered post mentioning about his employment with the organization and asking for gratuity amount. In case, there is no reply from the employee then another letter through registered post should be sent when the 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 ( the 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.
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..?
Dear Aman,
A consultant is not eligible for gratuity.
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
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
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.
I worked in company ABC for 3.5 years and then company name changed to XYZ where I have continued and worked for 1.5 years. We did not have to resign from company ABC but i have new join in company XYZ. Company management also remained same. Salary account created by the company changed. Now after my resignation, the company has not paid my gratuity even after two month. what can i do plz suggused.
Hi Vikas,
Please post your query on HR Forum of HR SUCCESS TALK at http://www.hrsuccesstalk.com
There your query will be answered by senior professionals with suitable course of action to b taken regarding same.
I’m facing same situation, can you please share result
Result is already shared
Can I know if a person x took gratuity with Y company once and again person x served 10 years in San company Y . Can he claim gratuity again in same company. If no then pls tell me we section of Labour law
Hi Manish,
If a person X worked for a company Y and leave the company after completion of 5 continuous year and get gratuity.
Later, Person X rejoin the company Y and serve for another 10 years, then yes, person X becomes eligible for Gratuity again.
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).
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.
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.
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!
Dear Archana,
Company with 10 or more employees only liable to pay gratuity.
Thanks Govind!
Dear Archana,
you are always welcome
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,
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.
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.
Dear Deena,
If employer wish to pay, employer can
Can I know if a person x took gratuity from company Y once for 10 years work and 2 years person x served another 10 years in Same company Y . Can person x claim gratuity again in same company for second ten years. If no then pls tell me which section of Labour law is applicable.
Manish Agarwal
Hi Archana,
Apologies for late reply:
If this person is not shown in any record of company then he can not claim for Gratuity.
If he is registered in company record but getting salary in cash then he is eligible for gratuity provided company has 20 or more people
Sir if a person of X worked in a government company of 2 year 4 month.
After he get the higher position through Direct recruitment in open market and served 3 year’s of service. If he eligible for grachuty.
Hi Ashok,
We have limited knowledge in case of government establishment.
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.
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.
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.
Dear Prasad,
Refer my below reply on your earlier query.
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……………
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.
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.
Dear Govind,
Thanks a lot for your advice…………
no……….. there is no full & final done…………
Again thanks…………….
You are welcome Prasad.
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????
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.
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?
Dear Murthy,
You are again eligible for gratuity for 10 years.
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
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.
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?
Dear Mansh,
If management of both companies are same then employee can claim for gratuity.
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
Dear Sarita,
15 stands for 15 days salary of employee in a year.
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?
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.
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?
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
in case an employee dies in one month of service or two month of service , will he is eligible for gratuity
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
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.
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?
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
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.
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.
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…
Dear Smitha,
You are very much eligible for gratuity. Company B need to pay you gratuity for 5 years.
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
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.
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 ?
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.
Pl.let me know that E-Mail massages are considered as legal information to emloyer for gratuity relaease
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.
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?
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.
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
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.
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
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?
Hi,
I had joined company on 17th Aug 2009. So if I leave company on 17th Jul 2014, will I be eligible for gratuity…
Dear Arjit,
As you have not completed 5 years hence you are not eligible for gratuity
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?
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.
if a person join an organisation at the age of 60+,whether he will be entitled for gratuity after his service of 5 years
Dear Mr Sunil,
If person is employed as employee then he is eligible for gratuity. Please refer the contract / appointment letter issued.
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
Dear Bhupesh, You are not eligible for gratuity as you have not completed 5 years with the company.
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.
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?
Thanks a lot Govind, appreciate your help.
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
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.
If a person worked more than 5 years for the company & gratuity is never deducted from his salary. Can he claim for gratuity?
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
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.
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.
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?
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
Dear Ram,
No it is not mandatory
Dear Ram,
Yes you are eligible for gratuity
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
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.
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.
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).
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).
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).
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
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.
Dear Paripurna,
there is no option to pay less gratuity. Every employer including school should pay gratuity as per the act.
Dear Govind ji Thankyou so much for your response. can I ask them to pay balance amount? or can I approach court? please reply.
Sir, I asked one question. But I did not get answer please reply sir.
Dear sir,
I didn’t get the reply of query. kindly do the needful.
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.
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??
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.
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
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.
Sir, I requested you to give a suggestion, but I did not get reply. Please give your valuable suggestion. K.Paripurna.
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.
Sir, Iasked you a queri.Ididnot get reply. Sir please give your suggestion. I will be grate ful to you.
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
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
Dear Sir,
Thanks for investing your valuable time for clarifying my doubts.
Dear Ramappa, You are welcome
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
Yes
240 days in case organization is 6 days a week. 190 days in case organization is 5 days a week.
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
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
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…
Dear Deepika,
Yes. Gratuity will be paid for 2 years.
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?
Dear Rahul, They are wrong in their logic. You are very well entitled for gratuity.
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?
Dear Kaushik, For gratuity, you should complete 5 years of continuous services. Hence you are not eligible for gratuity.
Dear Govind,
Thank you for your 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.
It will be calculated on new basic
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………….
Dear Rekha, You are not eligible for gratuity.
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,
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
Dear Arvind, services in both companies will be considered for the purpose of gratuity eligibile.
Sir please give me answer
Dear Rahul, Yes i have replied
Thanks sir
What should I have to do to get gratuity?
Dear Rahul,
Simple send them a letter stating your employment details and referring gratuity act ask them to pay your gratuity.
does a person working for 5 years, 5 months and 1 day working in a company get gratuity for 5 years or 6 years?
Dear Simran, you are entitled for 5 years gratuity
Dear Neil, Your relative is not entitled for gratuity.Which state your relative is employed in?
Dear sir I if I could kindly have your email I’d
Dear Abhi, you can post your queries on http://www.hrsuccesstalk.com/forum
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
Dear Venkat, You should claim your gratuity as you have worked under same principal employer.
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
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.
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?
.
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
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
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.
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?
You have pay gratuity for the number of year the person has served you.
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.
Dear Sima,
Discussions are going on at government level but there is no such notification as such. You can refer following link to know more:
http://hrsuccesstalk.com/forum/Thread-PF-threshold-raised-from-Rs-6-500-a-month-to-Rs-15-000
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 ?
Dear Sham, you need to complete another 5 years with new company to claim gratuity there.
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?
Dear Amit, you will get your gratuity along with your full and final only
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
Dear Friend,
you may not be able to claim gratuity
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
Dear Upma,
Employee will be eligible for gratuity
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.
Dear Durga,
Technically he is not eligible for gratuity.
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.
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
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.
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
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?
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
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?
Dear Friend,
LWP will be considered
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?
Dear Friend,
It will be considered for your eligibility for gratuity
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 ?
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.
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.
Hi
you are entitled for gratuity
Dear Raj,
You are very much eligible for Gratuity. It has nothing to do with you being on contractual roles.
Hello Sir,
You said that LWP will be considered means what now these 92 days will be deducted from total working days?
Dear Sarita, I mean LWP will be considered while calculating eligibility of an employee for gratuity.
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 ?
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.
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
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.
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.
Dear Jagdeep,
You are not eligible for gratuity. Although you have completed 5 years of service but it is not continuous.
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 ?
Dear Soura,
If the reason of shut down is valid then employees are not eligible for gratuity.
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
Dear Mr Gupta,
Yes you are eligible for gratuity in second firm as well.
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.
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.
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
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.
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
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.
Dear Garuav, Till his service but a maximum of Rs 10 Lacs
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.
Dear Mr Paul,
You can either go for pay when an employee retire or LIC Group Gratuity Scheme.
Dear sir,
If you can guide us even in few sentences, it would be of great help.
Thank you.
V. Fredrick Paul
I had join my company on 20 nov 2009 and left it on 15 oct2014 so can i apply for gratuity.
Regards
Jignesh
Dear Jignesh,
As you have not completed 5 years, you are not eligible for gratuity
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?
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.
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.
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
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..
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.
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?
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
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.
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?????
Hello,
Greetings!
Will I be eligible for gratuity if I worked for 4 years and 7 months?
Dear Jo,
You are not eligible for gratuity as you have not completed 5 years of continuous service
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.
Dear Anup,
Yes, you are eligible for gratuity. Please visit our forum http://www.hrsuccesstalk.com/forum and search. you will find alike queries
Dear Harshal,
You are not eligible for gratuity as you have not completed 5 years of continuous service whatever is the reason
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..
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.
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?
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?
it seems he forgot sign in the nominee form..so could you tell me the procedure?
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
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.
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.
Dear Vijay,
A consultant is not eligible for gratuity.
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.
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.
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.
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.
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
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.
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
Gratuity is paid on Basic + DA. you can calculate it as (Basic+DA) * 4.81% * number of months completed in the company
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.
Dear Hanspal,
You will get the gratuity based on your Basic Salary.
Formula : 6500 * 4.81% * 72
Dear Sir,
Employee Left the Organisation without Notice, He/she is applicable for gratuity??
Dear Priti,
employee is still applicable for gratuity
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
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.
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…
Dear Mr Negi,
Irrespective whether gratuity clause is mentioned in appointment letter, you are eligible for gratuity in case you completes 5 years
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 ?
Dear Rajat,
If you have not left the company irrespective of your resignation and withdrawal, you are eligible for gratuity.
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.
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.
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 ?
Dear Mr Joshi,
Are these three companies linked to each other by some or other way?
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
Dear Poonam
Yes you are eligible for gratuity.
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.
Dear Sam,
You have only completed 13 months not 5 years hence you are anyways not entitled for any gratuity.
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.
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
Govind,.Thanks once again for your quick 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 ?
Dear Kiran,
If employee has completed 5 years under a single contractor then he is eligible for gratuity.
I have completed 5 years in a company and given a letter to get gratuity, but they are ignoring what should I do
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.
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..
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.
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
Dear Ibrahim,
You should complete 5 years to claim gratuity.
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.
You will get the salary but not gratuity
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.
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
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.
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 ??
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.
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”
Dear Sham,
Your work tenure in first Bank will not be considered in second Bank.
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”.
Dear Sham,
In this case also you are not eligible for gratuity.
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 )
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.
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.
Dear Anita,
Training period is considered for determining eligibility of gratuity.
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
Dear Raju
Yes, you are eligible for gratuity
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
Dear Sulabh,
Yes, 10 months will be considered, if your full and final is not done yet.
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.
Dear Vinod,
I am afraid that you are not eligible for gratuity
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
Dear Archana,
I am not able to understand…how can you be a consultant and employee together. Please explain it more.
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.
Dear Sumesh,
Gratuity is paid on basic salary. Hence the hospital is correct in doing so.
Last month Basic Pay + D A should be considered
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.
Dear N Singh, She will not be eligible for gratuity.
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
Dear Vivek, you are not eligible for gratuity.
Your tenure will be considered from 8th September 2014 now
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
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.
I am 65 years old and working with a Pvt. Ltd. Company for last 6 years continuously , can i eligible for gratuity ?
Dear Mr Guha,
You are eligible for gratuity.
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.
Dear Meena,
Yes, it will be considered as continuity of services.
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?
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
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
Dear Vishal,
Yes, employee is eligible to claim gratuity from both the companies.
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
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.
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
If you extend your date of leaving by one day i.e 6th June 2015 then you become eligible for gratuity else not
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
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.
Many Thanks Govind ji 🙂
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
Dear Vivek,
As answered earlier, you are not eligible for gratuity.
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
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?
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
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.
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
Hope you will get your gratuity
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
Dear Alok,
We are happy to know that.
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
Dear Suresh,
If you have got your full and final from India company before moving to USA then you are not eligible for Gratuity.
Dear Govind,
Extension query of FAQ 23, I have to resign in india company and will join in USA with fresh offer letter
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?
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,
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.
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.
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,
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
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?
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
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.
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
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.
Dear Preeti,
Very unique case. You will not be eligible for gratuity until company policy during merger allow you to claim gratuity.
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).
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.
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.
Dear Aman,
Please refer below link to know about it.
http://hrsuccesstalk.blogspot.in/2013/03/13-facts-one-should-know-about-gratuity.html
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.
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.
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
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.
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.
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
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
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.
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
Dear Vishal,
Yes you can still claim the gratuity.
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
Ideally company should have paid it by itself. If not, then you should surely write a letter to company
Dear Govind,
If somone leaves a company after completion of 4yrs, 11 months & 7 days without any breaks, is he eligible for gratuity ?
Hi Aby,
The person is not eligible for gratuity. Can i know which state this person is working in?
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.
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
Dear Sharath,
It is employer’s responsibility also to pay gratuity to employee with his full and final.
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!
Dear Bunty, it will be on your recent basic and not on the maximum basic you had during your employment
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.
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.
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.
Dear Pragati,
She will be eligible for gratuity provided there was no full and final before sending her to US company
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.
Dear Karthik
You are very much eligible for gratuity
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.
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.
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.
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.
Thanks for the clarifications Govind.
With Regards,
Nagaraj.
We are happy that your query is been resolved.
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.
Dear Nagaraj,
Your query is already been answered.
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
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.
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
Hi Teena, It will be considered as 11 years
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 ?
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 ?
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
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.
And if there is any court judgement could you please provide me the case details for reference.
Hi Hirdesh,
I dont have much knowledge about gratuity in Bank. But, I think it is not correct.
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
Hi Karthi,
You will get gratuity with your full and final.
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
Hi Vidya,
Did you get your full and final before moving to Foreign?
Hi,
I have not moved to foreign country. I am in india only after I got my settlement.
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.
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.
is there is any special rule for gratuity to textile mills.
Hi Mahesh,
Gratuity act is same for textile industry.
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
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.
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
Hi Sudhir,
Yes. Mr A is eligible
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.
Dear Sir
I have joined in
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…
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.
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
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.
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.
Hi Mayank,
Request you to visit our blog post and refer FAQ 6. You will get the answer.
http://hrsuccesstalk.blogspot.in/2013/03/13-facts-one-should-know-about-gratuity.html
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
Dear Vikram
Please go through below link:
http://hrsuccesstalk.com/forum/Thread-Some-relevant-docs-in-support-of-training-period-consideration-for-gratuity
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.
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.
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.
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.
Dear Yasmeen,
You should be eligible for gratuity
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 …
Dear Mrs Gandhi,
If you have completed continuous 5 years with this company then you are eligible gratuity.
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
Dear Mohit,
You are not eligible for gratuity as you have not completed continuous 5 years of services.
Thanks for the answer ….
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 ?
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.
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
Dear Sasikumar,
You will not get your gratuity from LIC until you complete 5 years of continuous service
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
Dear Anil,
Yes you will be entitled for gratuity.
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
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
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
Dear Ravi,
You are eligible for gratuity.
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
Dear Bharat,
You are not eligible for gratuity as per our understanding
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.
Dear Kunal
Dont think he is eligible for gratuity
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
Dear Akar,
Company can pay but not bound by law.
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.
Dear Friend,
He is eligible for gratuity provided number of employees in the school are 10.
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
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?
Hi ,
i am working 5 days in a week. Completing 4yrs 8 months 8days with company including notice period as on May 13th 2016.
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
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.
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
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
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.
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
Dear Poonam
Yes, you will be eligible for gratuity.
Thank You.
]
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?
Dear Sreeraj
Yes, you are eligible for gratuity
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
Please post your query on our forum or under relevant blog on Bonus.
if someone has been worked with same owner but different companies. Can he or she applicable for gratuity
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.
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.
Dear Raj,
You are eligible for gratuity. Keep your documents with you.
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.
Dear Peeku
You are eligible for gratuity
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.
Dear Raj
We have already answered
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??
Dear Kishore,
Yes, you should get the gratuity.
Is it a 5 days a week working?
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?
Dear Rakesh,
I am afraid you are not eligible for gratuity as you have resigned from first company before completing 5 years.
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?
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
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.
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.
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.
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.
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.
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.
Dear Saurabh,
Do you have copy of any agreement which you have with company regarding higher gratuity amount?
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
Dear RBN,
One should work for 5 years continuously with one company and not with different companies.
ok…
thanks I guess the gratuity will be settled with my exit in full and final settlement.
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
Dear Das,
You will be eligible for gratuity
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
Dear Sandeep,
Are you working in a 5 days or 6 days working company?
hi
just wanted to know whether deduction of pf is mandatory to avail the benefit of gratuity
regards
pavneet
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.
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.
Dear Sarita,
You are very much eligible for gratuity for previous 8 years.
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
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?
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?
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.
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.
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.
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
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?
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
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
Thank you
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
Hi,
We are not aware about any such notification (increase in Gratuity limit). But to give reply to your query. Yes, organization can pay gratuity even if it more than decided limit but in that case it will be taxable.
I completed 6 year with XYZ organization and in my CTC, gratuity is not mentioned so in this case can I claim the gratuity.
Hi Ram,
You are very much eligible for Gratuity even if it is not mentioned in your gratuity as you have completed more than 5 years.
What is the provision in law that a consultant is not eligible for gratuity?
It is applicable only for full time employee. Please refer definition of employee in the Act.
Hello, can anybody suggest in case an organisation is 25 years old and it started the Gratuity just one year back(2016) is the employee working for last 10 years is entitled to claim for the gratuity today or it have to wait for the five years form the date the gratuity is started in the organisation??????
Hi Chandrama,
As soon as your organisation fall under Gratuity, it has to pay gratuity to employee leaving an organisation who has completed 5 years or more. Number of years should include employment tenure of an employee even before the act was applicable to the organization.
Hi,
I want to know that I have joined on 11-02-2011. I had withdrawn EPF full amount on 01-01-2015 & Shown reason left job when I had completed 4 years service, again after 2 months I have joined on 01-04-2015 same organisation now total year is 6 years till dtd. in this case Gratuity will be applicable or not.
Sonu kumar
Hi Sonu,
You are not eligible for Gratuity.
Hi, I have joined an organization on 12th July, 2012 but the organization enroll me as employee from Oct 2012.Now I want to resign from the job and want to claim for my gratuity. I will complete 4 yrs 7 months of my job in Feb 17. I have an identity card with date of joining from 12 th july 2012. Can I claim my gratuity..??
Hi Nazneen,
You are not eligible for Gratuity as you have not even completed 4 years 240 days yet
Greetings,
From and including: Monday, 3 December 2007
Thanks to HRSUCCESS TALK Team for managing such forum and helping all of us like me, who needed guidance and I would like to admit that I was least bothered about any cross checks based on Payslip miss calculations/F&F calculations/Gratuity, I was a the person more involved into operations work and was assuming how would there will be any miss calculations in Payslip/F&F/Gratuity its HR/Accounting teams work and they will take care of all my worries/issue by them selves, I am nothing to worry about except my work and customer issues.
Well I missed I should get Gratuity and my Previous employer didn’t pay me gratuity nor i did ask for it, Now when i am in need, my friends have cross questioned its not late approach with guidance to Previous employer, but previous employer has closed their office in Gurgaon. Requesting team to help me out to understand on my queries
My Work experience
To and including: Friday, 18 May 2012
Result: It is 1629 days from the start date to the end date, end date included
Or 4 years, 5 months, 16 days including the end date
1. SIP Technical Support (L3) Engineer in STS Team, Primus Telecommunication India Pvt. Ltd.
2. SIP Destination (L3) Engineer, Primus Telecommunication India Pvt. Ltd.
3. NOC Engineer Operations/Network Team, Primus Telecommunication India Pvt. Ltd.
4. Sr.NOC Engineer Operations/Network Team, Primus Telecommunication India Pvt.Ltd.
5. SME NOC, RIM HUB India Pvt. Ltd. it was a Continued Support to Primus.
Queries:
1. I heard Primus/Rimhub has closed India operations last year end, I have few email IDs of the HR and I am not sure will I get response from that, are they liable and supposed to pay my gratuity. I didn’t approach them yet. what should I be doing and how should I be approaching them.
2. I had been working for Primus Company being a Primus employee and Rimhub had got the Primus’s out sourced work and I resigned from Rimhub supporting Primus and 18th May 2012 was my last day, Am I eligible for Gratuity if yes for what period since I joined Primus or Since I joined Rimhub till my last working day.
3. Rs.13,605.00 was my last paysilp basic amount and special allowance Rs.17,194.00 of my CTC, what would be my approx Gratuity amount could be.
—
With Regards
Nagraj
+917498886056
Hi Neeraj,
You have worked for less number of days to be eligible for gratuity. Unfortunately, you are not eligible for gratuity.
Is more than 10 L and upto 20 L gratuity is now amended as non taxable? if yes can please share Govt. notification
DEAR everyone,
I joined on aug 2012 and due to some personal reasons i want to apply for sabbatical leave of 3 months. As i will be eligible for gratuity on 6 aug 2017 as i am not resigning. But my question is can company say bcoz u took sabatical leave 20 days bfore ur completion of 5 years.. U r not eleigible?
I am applying for sabatical leace 20 days of remained for completion of 5 years. I may resign after 6 aug 2017 i.e. In period of sabatical leave taken.
Will it effect my eligibility?
Pls reply to my query
Mohammed Sarfaraz
mohd.sarfaraz88@gmail.com
9179366424
Hi,
if an employee completes 4.8 years in an organisation, will he/she will be eligible for gratuity
?
Hi,
if an employee completes 4.8 years in an organisation, will he/she will be eligible for gratuity?
Are you working on a 5 days working company?
Hi i am Shinu,
I worked in a company and left after 3.2 Years and rejoined after 1 Year and worked for 4 Years. Am i eligible for gratuity?
Hi Shinu,
As you have not worked for continuous 5 years hence you are not eligible for gratuity.
No. You need to be in continuous employment
Dear Sir,
I have been working with XYZ Group since 01.04.2010 to till date. I was appointed first in Company A of XYZ Group from 01.04.2010 and then transferred to Company B of the XYZ group from 01.01.2014 to till date. Now. I have resigned from the Company B. The total work experience with the same group is 7 years and 10 months now within Company A and Company B. It is a 6 day working companies. Am I eligible for Gratuity? Gratuity is part of my CTC. The gratuity deduction started from transferring in Company B of the same Group.
What would be considered as the Basic while calculating the gratuity. The last ACTUAL basic paid (considering he may have taken some leave without pay) or the Gross Basic for the purpose of calculating the gratuity ?
My friend have worked for a company on 3rd party pay roll for 14 months and then company have confirmed him and taken him on company pay roll where he have worked for 4 yrs and 5 months then is he is eligible for gratuity
Tax Benefits of setting up a Gratuity Trust?
Gratuity benefits are governed by “The Payment of Gratuity Act 1972” and paid by the Company to an employee in addition to his salary on exit from the company. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, –
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Gratuity is a statutory right of employee whoever completes 5 years in the same organization and is a terminal benefit. It means, Gratuity amount can be determined only on the monthly terminal wages of the employee on his exit from the Company after completion of 5 years of Service. The cost is to be borne by the Company and not by an employee. hence, unlike other fringe benefits (i.e. Medical Insurance, Term Insurance & Accidental Insurance) it can not be part of CTC.
To understand this, let us take an Example,
Mr. A Joins the Organization with a Basic Pay of Rs. 26,000/- per month and monthly CTC of 50,000/-. Assuming that expected increase in basic salary is assumed to be 10% p.a.
Now Gratuity Payments for next 5 years will be :-
On Completion of 1 Yr – (15/26)* 28,600*1 = 16,500/-
On Completion of 2 Yrs – (15/26)*31,460*2 = 36,300/-
On Completion of 3 Yrs – (15/26)*34,606*3 = 59,895/-
On Completion of 4 Yrs – (15/26)*38,067*4 = 87,847/-
On Completion of 5 Yrs – (15/26)*41,873*5 = 1,20,788/-
Now for making the payment of gratuity, Company has 2 options :
(i) Pay as you go option – Where company makes a provision of Gratuity in the Balance Sheet on the accrual basis taking an actuarial report on BS date from an Actuary and as and when Mr. A leaves the organization, company pay gratuity from their resources and get the tax benefit for the gratuity paid.
Expected Tax Benefit calculation in case of “Pay as you Go Option” :-
For Provision of 1st Yr – NIL
For Provision of 2nd Yr – NIL
For Provision of 3rd Yr – NIL
For Provision of 4th Yr – NIL
For Payment on 5th Yr – 1,20,788/-
In this case company, Mr. A will leave the company then company will get the tax benefit of Rs. 1,20,788/-.
(ii) Funding Option – In this option, Company decides to Setup an Approved Gratuity Trust . The Investment of Company is either “Self Managed ” or “ Managed by Insurance Company”. Company contribute the annual contribution in this Gratuity Trust and get the Tax Benefits. In this case, when Mr. A will leave the company, gratuity will be to Mr. A from the Gratuity Trust.
Expected Tax Benefit calculation in case of “Funding Option” under Section 36(1)(v) of the IT Act 1961 for Annual Contribution which is 8.33% of Annual Basic Salary of Employee.
For more details, you may visit my write up at https://www.citehr.com/609164-benefits-setting-up-gratuity-trust-companies.html
We have provided consultancy for administration Gratuity Trust Fund in the various organization in all sectors of Indian Economy on receipt of their Management request and If you wish to know details like:-
1. Who can be covered under Gratuity Trust Fund?
2. How can companies administer Gratuity Trust and avail of the tax benefits?
3. Benefits to Employer,
4. Benefits to Employee,
5. Gratuity Trust Fund -Interpretation of Tax Implications.
We may also be contacted for the structuring of other Retention Schemes, Group Health Insurances, Group Terms Insurances, Group Annuity Plans, Group superannuation Plans, Property/Fire Insurances and investment in 100% risk-Free Government of India Bonds (GOI Bonds)
Sir,
A teacher X jointed in a unaided school at the age of 50 yrs( in 2010) .when X was 56yrs (in2016 )X completed 6 years service(with probation period 3years)
When X asked for gratuity, The principal ( she) refused to pay gratuity by telling that not eligible ,because of 3 years were probation period.)Only paid leave surrender amount.
when X was going to get another school principal asked X to condinue the same school up to 60yrs, but X used to sign
on another register.so no record with previous register
Principal of X was going to transfer in 2019, so the principal called X and compelled X to do sign as “received” on old dated retirement letter, At first X refused but later X did sign(dated Nov 2015) (the letter had mentioned regarding good service
period from to and at bottom letter had written as ”clear the account from the office”)
when X asked again about gratuity she refused.She told next principal may or may not be considered, after complete the one more year
Sir,
1) Is there any problem with that letter
2) Is X eligible for 10yrs gratuity or 6yrs
3)what X want to do to get Gratuity
Thanking you
Dear Sir,
I have worked for XYZ company for 6 years,than I got transferred to same company different group, my HR assured me that as gratuity can be transferred as i was getting transferred within same company but groups were different.Old company has given me transferred letter from LIC ,but my current company denying that the gratuity amount not credited in their gratuity fund .Please help how can I get the status of my last gratuity, It’s still showing in my EPFO passbook on last company name .Please advise it’s more than 3 years, i am chasing my current HR for the same but no positive reply.