Gratuity denied - worked in an organization for 4 year

Dear Client,

Section 4(2) of the Payment of the Gratuity Act spells out the condition for employee gratuity if he/she has not completed five years of service.

The section says that for every year of completed service (more than six months), the employee can receive gratuity. As an employee, if you work in an organization for more than six months, you are entitled to get the gratuity.

You can calculate your gratuity amount, using the following formula:

Gratuity = N x B x 15/26
In the above formula,
N is the number of years of service rendered
B is the last drawn salary (Basic salary + Dearness Allowance)

The employer must pay the gratuity amount within 30 days from when it becomes payable to the beneficiary. However, if the employer fails to pay the amount within the specified period, as a beneficiary, you are entitled to receive a simple interest on the amount.

If you don’t get the gratuity payment within 30 days from the date it becomes payable; you can write a complaint to the Controlling Authority. Non-payment of gratuity is a punishable offence, and the employer shall be charged with imprisonment for a term not less than three months and/or with a fine not less than Rs. 10,000 and not more than Rs. 20,000.

Thank you so much, I hope this answer helped you.

Dear Client
Yes, the requirement for gratuity eligibility is 5 years but then the law says that if 6 months are completed then 6 months will be counted as one full year and hence you become eligible to get the gratuity after 4 years 9 months.