gratuity claim

Sir, My husband was working for TCS-BPO from 05.06.06 till 31.03.11 around 4 yrs and 9 months, all of a sudden he was told that the project he worked was scrapped down and he couldnt fit in any of their other projects, he was just given a week's time and asked to give a resignation from his side. He was denied with the gratuity amount as he didnt complete 5 yrs.

I wanted to know gratuity has some calculation and if at all he is eligible to claim for gratuity, please advice as it will help our financial crunch.

asked Apr 24 '12 at 20:43 by dhatchayanim 1259

The Madras HC in the case of Mettur Beard Sell Ltd Versus RLC has decided the same type of issue. It was held that any employee who completes 240 days of service in a year in the 5th year will be deemed to have continued in service for one year as stipulated by sec. 2(a) of the Payment of Gratuity Act. It was held that an employee who has put in his services for 10 months and 18 days for the 5 year subsequent to first 4 years should be deemed to have completed , continued servcice of 5 years and is entitled for gratuity. The case was reported as 1998 LLR 1072 (Mad H.C.).

It looks like employer may have deliberately asked to resign to avoid paying gratuity amount.

It would be better to not resign and continue working for next 2-3 months.

answered Apr 24 '12 at 22:06 by Pankaj Batra 5.2k320


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Asked: Apr 24 '12 at 20:43

Seen: 1,243 times

Last updated: Apr 24 '12 at 22:06