Gratuity for Fixed term employee
10 months ago
I worked for a PSU for 4 years 3 months 12 days as a fixed term employee. I have come to know that fixed term employees are eligible for gratuity on pro rata basis for the no. of years worked. Please let me know which law/rules/bill/act can i quote to claim Gratuity from my previous employer.
A.Dear Sir,
4years 240 days is enough for claiming gratuity.
"As per Madras High Court judgement in a case of Mettur Beardsell Limited [represented by its Personal Manager], Madras v/s Regional Labour Commissioner [Central Authority under the Payment of Gratuity Act, 1972], Madras, it has been stated that if an employee has rendered continuous service of 240 days in the fifth year of service then for the purpose of calculation of gratuity, it must be considered as if he has completed FIVE years of continuous service."
As per the Payment of Gratuity Act, 1972 an employee or workman is entitled for payment of gratuity from his employer on completion of continuous service of 05 years in the establishment. Continuous service means 240 days of service in a year excluding the notice period. Fixed-term employment defined under Section-2 (o) of the IR Code and New Labour codes, which is yet to be implemented, contains a clause stating that fixed-term workers become eligible for gratuity if they render service under their contract for a period of one year and will be entitled to payment of Gratuity after completion of only one year of service. Since the New Labour Code is yet to be implemented, the employee under Fixed-term employment who rendered service for less than 5 years is not eligible for payment of Gratuity under the Payment of Gratuity Act, 1972.
You can claim gratuity under the Payment of Gratuity Act.
The payment of gratuity by the employer is a way to show gratitude towards an employee for his continuous service for the establishment. There are different forms to apply for gratuity in different circumstances which are
If an employee himself applies for the gratuity, Form I should be used for application.
If an employee’s nominee applies for the gratuity, Form J should be used for application.
If an employee’s legal heir applies for the gratuity, Form K should be used for application.
In this case, you must use form I. You have to fill the form and submit it along with a copy of your bank passbook or a cancelled cheque. Within 30 days of submission you will get your gratuity amount transferred into your bank account.