Continuous Service for Gratuity Calculations Continuous Service for Gratuity Calculations

1 month ago

I have worked from 03.01.2019 to 28.05.2019 in organisation A and from 29.05.2019 to 15.02.2024 in organisation B due to organisation A was takenover by organisation B. Is i am eligible for gratuity?

Anik

Responded 1 month ago

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A.Dear Client,

Yes, you are eligible for payment of gratuity from your employer. The Payment of Gratuity Act, 1972, mandates the payment of gratuity by employers in certain establishments. According to Section 4(1) of the Act, an employee is entitled to receive gratuity upon cessation of employment after completing five years or more of continuous service. The Act specifies the rates at which gratuity should be paid for each completed year of service or part thereof in excess of six months.

To claim your gratuity, you need to follow the process outlined in the Act. Rule 7(1) of the Payment of Gratuity Rules, 1972, requires the employee or an authorized representative to apply in Form 'I' to the employer within thirty days from the date the gratuity becomes payable. The employer is obligated to disburse the gratuity within 30 days of the cessation of your employment or the receipt of your claim.

If the employer denies or delays the payment of gratuity, you have the right to apply to the Controlling Authority under the Payment of Gratuity Act, which is often the Assistant Labour Commissioner. They can assist you in claiming your gratuity from the employer, including any accrued interest for the delay in payment.
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Vidhi Samaadhaan Vidhi Samaadhaan

Kishan Dutt Kalaskar

Responded 1 month ago

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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.\\\"

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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 1 month ago

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A.Dear Client,
Yes, you are eligible for payment of gratuity by your 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. 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 authorized, 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 who is duty bound to disburse the gratuity within 30 days of cessation of employment of employee or claim made by an employee. After the completion of 30 days, the employer has to pay you not only the gratuity amount but also the simple interest accrued for the delay in payment of the gratuity. Given the above proposition of law, when you rendered uninterrupted and continuous service for more than five years in an establishment treating the merger of the Companies. under the Payment of Gratuity Act, 1972, you are eligible for payment of gratuity by your employer. If the employer denies payment of Gratuity, then apply to the Controlling Authority under the Payment of Gratuity Act and the Asst. Labour Commissioner concerned with claiming gratuity from the employer.
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