An employee is eligible to gratuity if he is having less than 5 years of continuous service. In LALLAPPA LINGAPPAS Case (1981 ILLN 347) Supreme Court had held that gratuity is payable only for the years an employee puts in a minimum attendance of 240 days per year. But Section 2A of the Gratuity act has not been amended hence it is not valid. As per amended section 2a(1) for regular employees there should not be any minimum attendance test however the 240 days stipulation would be applicable to casual workers who are attracted by section 2A(2).
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