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Served 4 years 240 days ,company is not giving gratuity


27-Sep-2023 (In Labour & Service Law)

I have served an organisation for 4 years 8 months and 19 days and joined and another organisation. Previous Company is registered as Ltd company. I have given a reference of a law which states that 4 years and 240 days is considered as 5 years. So I m eligible for gratuity. But company had denied saying as per gratuity act I am not eligible for gratuity. Please guid me if I am asking as per right law.

Answers (2)

Answer #1
703 votes
You are correct in as much as you say that 4 years and 240 days would be considered as 5 years. Upon reading Section 2A of the Gratuity Act, it is clear that an employee shall be said to be in continuous service which may be interrupted by sickness, accident, etc. Upon further reading, the section also says that where an employee is not in continuous service, he will be considered to be in continuous service if in the previous year from the date of calculation of gratuity he has worked for 240 days. Therefore, in principle, you are correct.
Further, to be factually correct, have you completed 240 days in the preceding year before the date of calculation of your gratuity.That is crucial. Please check and let me know.
Also, does your previous company have more than 10 employees? And is your previous company engaged in mining or plantation work? I am asking these questions because under the Act, these two types of companies are exempted from paying gratuity.
If your answers are no, then I think you have a good case to file before the labour commissioner and seek payment of gratuity. Do answer my questions so that I can advice you better.
Regards

Answer #2
977 votes
Hi
In order to claim Gratuity you must see if your employer had employed 10 persons as the Payment Of Gratuity Act will not apply if the employer never had 10 employees.
You have mentioned your period of employment but not the number of employees.
Therefore your question can not be replied satisfactorily.
Being a limited company does not mean that one may presume a strength of 10 or more employees.

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