Chandramouli Atthuluri
Asked February 01, 2017

Eligibility for Gratuity

  • 1 Answer

Dear Sir, I had worked for my previous company from Jan-2007 to July-2016( 9 Years 7 months). But in that whole span i was not gone for office for one month(2012-April month) with unpaid salary but i did not resigned. But that employer is rejected my gratuity saying that the service is not continuous. Kindly advice me that am i really not eligible to get the gratuity for the 9 Years 6 months service. Thanks and regards Chandramouli

Answer 1

An employee is entitled to the benefits of gratuity under the Payment of Gratuity Act, 1972. In  the present situation, you have served for a period exceeding five years, that makes you  eligible to the benefits of gratuity.​(Section 4(1) of the Act.)  

You have the right to apply for gratuity by a written  application, and the employer is obligated to pay within the period of thirty days, and failing  to do so would make the employer pay interest upon the amount. ( Section 7 of the Act. ) Also, you have the  right to send an application to the controlling authority with respect to this issue, and due  inquiry will be proceeded for the determination of the amount of gratuity.

In my opinion, the  continuous period of service is the test to determine the benefits of gratuity, and since you  worked as an employee for a period of not less than five years, and the employment period  had been uninterrupted, you are entitled to gratuity. After the due leave, your employment resumed thereafter for a long  period. Therefore, any objection by the employer to refuse gratuity is simply wrong and  violates the Act.  

Researcher: Shreyan Acharya

Agree Comment 0 Agrees almost 4 years ago

Please Login or Register to Submit Answer

Directory ads
Need to talk to a lawyer?

Book a phone consultation with a top-rated lawyer on Lawfarm.