THE PAYMENT OF GRATUITY ACT-1972
1. When is gratuity applicable to an employee?
Ans: Gratuity is applicable to a permanent employee who completes 5 years of continuous servicewith theorganisation.
2. Which form has to be filled for nomination of Gratuity?
Ans: Form F has to be filled for Nomination of Gratuity.
3. who can be nominated for Gratuity?
Ans: If employee is married than he/she can nominate spouse, if not then dependant parents.
4. if an employee does not have dependant parents or is not married, can he/shenominatehis/her brother or sister?
Ans: Yes he/she can do that, but sooner or later he/she acquires a family than the employee has tocommunicatethe same to the HR department to make the necessary changes in Nomination.
5. When is an employee eligible for getting gratuity?
Ans: Employee has to complete continuous service of 5 years, but after the ruling of Madras HighCourt if there are 240 working days in the 5
year even then an employee is eligible for thegratuity.
6. What if an employee completes 4 years & 6 months of service, is he eligible forGratuity?
Ans: No, but where an employee has completed 4 years & 240 days of continuous service in the 5thyear he iseligible for the Gratuity.
7. What if an employee before completing 5 years of continues service expires, is heeligible forGratuity?
Ans: In case the employee expires before completing 5 years and gratuity could be paid to thenominee of thedeceased employee provided the employee has completed a year of service.
8. What is the maximum Gratuity payable to an employee?
Ans: Maximum Gratuity payable to an employee is Three Lakhs Fifty Thousand only.
9. Is retrenched employee entitled to gratuity?
Ans: Yes, a retrenched employee is also entitled to gratuity.