Whether employee is eligible for gratuity for
less than 5 Yrs Service
As per the
judgment of the Supreme Court an employee is eligible for gratuity if he has
completed 4 years of continuous service and 240 days continuous working in
5th year. On the day when he completes his 240 days in the 5th year he
will be eligible for gratuity.
- The
judgment of Supreme Court rendered under the provisions of the
Industrial Dispute Act in Surendra Kumar Verma vs. Central Govt.
Industrial Tribunal,[(1980) (4) S.C.C.433)], 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.
- An
employee who has put in his service for a period of 240 days in fifth year
will be deemed to have continued in the service for 1 year. Mettus
Beardsell Ltd., Madrs Vs. RLC (C) 1998 LLR 1072(Mad)
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