As pointed out by me in my earlier posting, the date on which one completes 5 years of service with reference to his joining is the date on which he becomes eligible for gratuity. One who joined on 1-1-2003 becomes eligible to get gratuity on 1-1-2008. If he leaves during 2007 but working for 240 days in 2007, cannot get gratuity as per the Payment of Gratuity Act. In P.Raghavalu and Sons Vs. Additional Labour Court, Andhra Pradesh, it was decided that one who had worked for 4 years, 11 months and 10 days (just 20 days short) was not eligible for gratuity saying that the qualifying phrase "fraction of period exceeding six month shall be taken as one year" will be considered for deciding the amount of gratuity and not for deterning the eligibility for gratuity.
I heard that there is some other judgement against this ruling permitting those with 4 years + 6 months to get gratuity. But the intrepretation of the Act is to take 5 years from the date of joining to date of leaving.
The fraction of six months and 240 days are considered for determining the amount of gratuity. As such one who has worked for 6 years and 7 months will get gratuity for 7 years.
17th March 2008 From India, Kannur