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Gratuity Denied for 4 years and 194 days service
1 year ago
I was working with an Organization in Mumbai from 16 Jan 2018 to 29 July 2022 that is 4 years and 194 day. My office works for 5 days a week. Now after relieving they are denying me gratuity citing that I worked for 4 years 6 months and gratuity is applicable for period of 4 years and 8 months. Am I really not eligible for gratuity.?
A.Dear Client,
Section 4(2) of the Payment of Gratuity Act spells out the condition on the eligibility of an employee for gratuity in the event of him not completing the full five year period. The section says that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee. That means if an employee works in the establishment for more than 6 months in a year, he shall be eligible to get gratuity at the prescribed rate. So, if an employee completes 4 years and 6 months of continuous service in the same establishment, he is eligible to get gratuity as per the Payment of Gratuity Act 1972.
Hence if you have completed the above requirement then you are eligible to earn gratuity.
Thank you so much, I hope this answer helped you.
Section 4(2) of the Payment of Gratuity Act spells out the condition on the eligibility of an employee for gratuity in the event of him not completing the full five year period. The section says that for every completed year of service in excess of six months, the employer shall pay gratuity to an employee. That means if an employee works in the establishment for more than 6 months in a year, he shall be eligible to get gratuity at the prescribed rate. So, if an employee completes 4 years and 6 months of continuous service in the same establishment, he is eligible to get gratuity as per the Payment of Gratuity Act 1972.
Hence if you have completed the above requirement then you are eligible to earn gratuity.
Thank you so much, I hope this answer helped you.
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