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Eligibility to get gratuity after 4yrs of service


29-Mar-2023 (In Corporate Law)
I resigned from my previous company in Jan 2017 after serving a period of 4 years and 283 days. As per gratuity act 1972, I understand I am eligible for gratuity of 5 years. My employer verbally confirmed the same before I resigned, but now is refusing to release the payment. Please advise whether I am eligible for the gratuity or not.
Answers (3)

Answer #1
988 votes
you are eligible for gratuity as the minimum requirement is 4 year and 240 days i.e. 4 years and 8 months. your employer is bound to give you the benefits of gratuity. You can send legal notice for the same. You will have to share complete details for this, like your appointment letter, terms and condition etc. before sending the legal notice. Generally on this stage of legal notice the releases all dues to its employees.
Answer #2
786 votes
As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity.
Surendra Kumar Verma vs. Central Govt. Industrial Tribunal,[(1980) (4) S.C.C.433)],

It is enough that an employee has a service of 283 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. Hence you are eligible for gratuity.
Answer #3
533 votes
We will have to go over your resignation/ termination related documents to advise you on this issue. Feel free to set up a meeting with us through Law Rato.

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