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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
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.
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.
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