Question regarding Gratuity

Hi,

I am asking this question on behalf of one of my friends. He recently changed his job after spending nearly five years with a company. When he went to complete his relieving formalities with his old company, the company refused to pay him his Gratuity amount as he had not completed five full years with the company.

My friend actually worked for the company for four years and 310 days. Now my question is this:

Is it necessary to complete full five years to be eligible for Gratuity?

While researching, we came across a case in which there was a ruling by a High Court (I don't remember which one) that any employee who has completed four years and 260 days is eligible for payment of Gratuity.

I am unable to find anything in the law that clears this particular doubt. Can you please help me resolve this issue and provide proper guidance to my friend? Is he eligible to get Gratuity or not?

Hi,

Thanks for the quick response. That clears the doubt by a long way.

Regards,

Gaurang

Dear Gaurang,

Hope , the previous reply is sufficient for you.

If your friend's salary break up (CTC) includes gratuity also, then irrespective of 310 or 240 days. He is entitled for the gratuity.

Most of the companies, depending on the contribution / rapport with management, the management sanctions the same on prorata basis.

Regards
Balaji

Hi Balaji,

Yes, the previous reply cleared all doubts. My friend has already talked to the management of his previous company and hopefully, the issue will be resolved very soon.

Thanks for the help.

Regards,

Gaurang