Gratuity for Employees under a Contract
10 months ago
I joined the Company in May 2018 and then resigned on Nov 2021. Then after 2 days, i rejoined the company under a new employee number and now resigning on June 2023. In total, i have served 5 years. Both the employment are under contract of 5 years. Also in PF records the joining still shows for May 2018. Please tell me if i am eligible for gratuity or not. If yes then what legal steps i need to take to claim gratuity
A.Hello,
As per the information you have mentioend you are not eligible for any gratuity , as per the law you have to do the service for atleast 5 years continously in the same organisation to be eligible for gratuity.
As per the information you have mentioend you are not eligible for any gratuity , as per the law you have to do the service for atleast 5 years continously in the same organisation to be eligible for gratuity.
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A.Dear Client,
The Payment of Gratuity Act, 1972 requires a minimum of five years of continuous service (as defined u/s.2A of the Act) under the same employer to make an employee or worker eligible for gratuity from the Employer. In your case, you rejoin the company after a break of two days and your employment contract continues thereafter for five years, So you will not be disqualified for gratuity on this ground alone as you otherwise completed 240 days of continuous service in that year and service will not be treated in parts for the purpose of gratuity but as continuous one. Accordingly, you are eligible for gratuity. Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, within thirty days from the date the gratuity became payable, in Form 'I' to the employer.
In case of denial by the employer, reach out to the office of the concerned Labour Commissioner who is the controlling authority under the Payment of Gratuity Act, 1972, for filing a complaint for non-payment of Gratuity against the employer. You may also serve a legal notice to your employer for the cause and if you need any assistance in the matter from us you may contact our legal team for the purpose.
The Payment of Gratuity Act, 1972 requires a minimum of five years of continuous service (as defined u/s.2A of the Act) under the same employer to make an employee or worker eligible for gratuity from the Employer. In your case, you rejoin the company after a break of two days and your employment contract continues thereafter for five years, So you will not be disqualified for gratuity on this ground alone as you otherwise completed 240 days of continuous service in that year and service will not be treated in parts for the purpose of gratuity but as continuous one. Accordingly, you are eligible for gratuity. Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, within thirty days from the date the gratuity became payable, in Form 'I' to the employer.
In case of denial by the employer, reach out to the office of the concerned Labour Commissioner who is the controlling authority under the Payment of Gratuity Act, 1972, for filing a complaint for non-payment of Gratuity against the employer. You may also serve a legal notice to your employer for the cause and if you need any assistance in the matter from us you may contact our legal team for the purpose.
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