In the gratuity Act "Gratuity is applicable to a permanent employee who completes 5 years of continuous service with the organisation"
An Employee is complete 5 year of continuously serving the Organization that mean If any employer approved his two year holidays for training or further study still he is eligible for the gratuity.
W.E.F- Date of joining -
an employee has completed 4 years & 240 days of continuous service in the 5th year he is eligible for the Gratuity.
Basicly Gratuity calculated from D.O.J to 5 Year -
If a Person Join 5th Dec 2001 and continuous service till 5th Dec 2006 is eligible for the gratuity. wheter he is on leave for 3 month in a year or 2 year continous for an reason but Sanctioned from the Employer.
18th December 2010 From India, Delhi
18th December 2010 From India, Hyderabad
Please note that according to section 4 of the Aat, Gratuity becomes payable only after rendering continuous service of not less then five years unless the termination of the employment of any employee is due to death or disablement.
Apex Management Consultants, Parwanoo
22nd April 2011 From India, Shimla