QA EXCUTIVE QA EXCUTIVE

3 months ago

So, I left my previous company about 4 months ago after working there for about 4 years and 11 months. I would like to know whether I am eligible for gratuity. They have cleared my salary but have not updated gratuity, stating I am not eligible

Legal Counsel Vidhikarya

Responded 3 months ago

View All Answers
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. The Madras High Court in Salem Textile Case had held that an employee who has completed 4 years and 240 days is eligible for gratuity. In view of the above proposition of law, when you rendered uninterrupted and continuous service for 4 years 11 months in an establishment including your contractual period, you are eligible for payment of gratuity from your employer. In case of denial of gratuity by the employer, reach out to the office of the concerned Labour Commissioner and the Controlling Authority under the Act to file a complaint against the employer over non-payment of gratuity.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Read Related Answers

question iconCan a company deny experience-relieving letter for violating NDA
Dear Client, For a breach of the terms of an employment contract, an employer can take legal action against the employee claiming damages arising out of the breach of said contract. But the action of...
question iconIllegal Termination
Dear Client, From the contents of your query, the management's action, prima facie, appears to be highly arbitrary and illegal and can be termed as victimization and unfair labour practice. When the c...
question iconEmployee accident
Dear Client, Section 3 of the Employees Compensation Act, 1923 deals with the Employer's liability for compensation payable to an injured employee in case the injury is caused in the course of and ari...
question iconJob fraud
Dear Client, It appears from the query, that you are trapped by a fraudster company by alluring with fake employment that costs you a sum of Rs.2 lakhs. When you are in receipt of an offer letter issu...
question iconApplicability of Factories Act and Shops & Establishments Act for NGOs in Karnataka
Dear Client, Non-profit organizations/NGOs, even though they may not engage in commercial activities, may still fall within the purview of the Shops and Establishment Act if they provide services or...