Gratuity Eligibility
6 months ago
Worked from 20-09-2018 to 10-07-2023 for 6 days in a week in an AICTE affiliated private college, Ahmedabad. They are refusing to pay the gratuity as I have not completed full 5 years of service. If eligible then what is the process for legal action against college.
A.Dear Client,
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for the establishment where it is applicable. A gratuity must be paid to an employee upon cessation of employment if he or she has rendered continuous service for five years or more, according to Section 4(1) of the Payment of Gratuity Act of 1972. Section 4(2) of the Act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. According to section 2A of the Act, an employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee. Further, according to section 2A(2)(b) of the Act, for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) one hundred and twenty days, in any other case. The Madras High Court in Salem Textile Case had held that an employee who has completed 4 years and 240 days of service is eligible for gratuity. In view of the above proposition of law, when you rendered uninterrupted and continuous service from 20-09-2018 to 10-07-2023 @ 6 days a week in an establishment. you are eligible for payment of gratuity by your employer. In view of the above proposition of law and precedents, when you rendered uninterrupted and continuous service for 5 years in an establishment, you are eligible for payment of gratuity from your employer. If the employer denies payment of Gratuity, then file an application before the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner concerned claiming gratuity from the employer.
With the enactment of the Payment of Gratuity Act, 1972, gratuity payment has become mandatory for the establishment where it is applicable. A gratuity must be paid to an employee upon cessation of employment if he or she has rendered continuous service for five years or more, according to Section 4(1) of the Payment of Gratuity Act of 1972. Section 4(2) of the Act provides that for every completed year of service or part thereof in excess of 6 months, the employer shall pay gratuity to an employee at the prescribed rates. According to section 2A of the Act, an employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee. Further, according to section 2A(2)(b) of the Act, for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) one hundred and twenty days, in any other case. The Madras High Court in Salem Textile Case had held that an employee who has completed 4 years and 240 days of service is eligible for gratuity. In view of the above proposition of law, when you rendered uninterrupted and continuous service from 20-09-2018 to 10-07-2023 @ 6 days a week in an establishment. you are eligible for payment of gratuity by your employer. In view of the above proposition of law and precedents, when you rendered uninterrupted and continuous service for 5 years in an establishment, you are eligible for payment of gratuity from your employer. If the employer denies payment of Gratuity, then file an application before the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner concerned claiming gratuity from the employer.
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A.Dear Client,
In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity to employees. Gratuity is a retirement benefit provided to employees who have completed at least five years of continuous service with the same employer. The Act defines continuous service as working for at least 190 days in a year. It's calculated based on a specific formula, taking into account your last drawn salary and the number of years of service. In your case, if you have worked from 20-09-2018 to 10-07-2023, you've completed nearly 4 years and 10 months, which is short of the required 5 years. Therefore, the college's refusal to pay gratuity appears to be in accordance with the law.
In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity to employees. Gratuity is a retirement benefit provided to employees who have completed at least five years of continuous service with the same employer. The Act defines continuous service as working for at least 190 days in a year. It's calculated based on a specific formula, taking into account your last drawn salary and the number of years of service. In your case, if you have worked from 20-09-2018 to 10-07-2023, you've completed nearly 4 years and 10 months, which is short of the required 5 years. Therefore, the college's refusal to pay gratuity appears to be in accordance with the law.
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