Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
D. Forum
What's New


Discussions Forum
Home Forum Other Topics This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Gratuity Eligibility if employer seized the services before completion of 5 years, Other Topics

Issue Id: - 115324
Dated: 15-8-2019
By:- Ramesh Kothari
Gratuity Eligibility if employer seized the services before completion of 5 years

  • Contents

I would like to know that if employer asked his employee to leave the job before completion of 5 years of his services (seized of employment). In that case will gratuity payable to employee.

As per gratuity act it is applicable only after completion of 5 years of services. Is there any provision if employer seized the services of employee before said period. Pl let me know. Is there any case laws on this issue

Whats app 7062740479

Post Reply

Posts / Replies

Showing Replies 1 to 5 of 5 Records

1 Dated: 16-8-2019

By virtue of the judgment of Supreme Court rendered under the provisions of the Industrial Dispute Act in SURENDRA KUMAR VERMA & ANR. VERSUS CENTRAL GOVT. INDUSTRIAL TRIBUNAL CUM LABOUR COURT NEW DELHI [1980 (9) TMI 285 - SUPREME COURT], it is enough that an employee has a service of 240 days in the preceding 12 months and it is not necessary that he should have completed one whole year’s service. 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 10 months 11 days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity."

2 Dated: 16-8-2019
By:- Ramesh Kothari

Dear Mr. Yagay

This not relevant answer . Because emploere asked to leave after 2.5 years but before completion . Whereas you answer abt completion of 4years 11 month on basis of 240 days working in one year

3 Dated: 17-8-2019
By:- Ganeshan Kalyani

Sri Ramesh Sir, have you gone through the case law cited by Sri. Yagay Sir.

4 Dated: 19-8-2019

Gratuity liability does not arise.

5 Dated: 20-8-2019
By:- Ramesh Kothari

Govind sir

I know it is not arises as per section 4 (1) of gratuity Act but my question is that if gratuity is part of CTC than it is integral part of salary and same is yearly treatment given in books of accounts when it become to cost of co. In such case when employer remove employee before 5 years. Gratuity must be given many HR expert have same opinion.

However act is mum on this issue and advantage is being taken by the employer

Any case laws is there when employee remove before 5 years of services and gratuity not paid


Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||