Dear All,
i am currently working in a reputated Enginnering company. i have joined company on 4 Augest 2008 and had a bond of 4 years.
In my bond it is written that the Training period (not contract), which is of 1 year, shall not be considered as service period.
so if i resign on 4 Augest 2013 (complete 5 years in company)??
as my employeer has said that it is not applicable for me since training period is not considered as service.
I have read all the threads at CiteHR, which shows that if ther is continous service after the training, than it should be considered as "in Service".
Further for the training period they had deducted PF from our salary.
Secong question is that if i resign on 5th July 2013 and serve a notice of one month, then whether Gratuity shall be payable??
IF Gratuity is payable, then please suggest me how can i prove it to my financial officer...
please provide me some backup documents, case study...
Prakash Rathi

10th May 2013 From United States, Ashburn

Partner - Risk Management
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Sr. Hr Executive @ Polymerupdate
Executive Hr
Serving In Hr
+3 Others

If you have worked for 5 years continuosly then you are eligible for gratuity benefits. Training/probation period etc.will be counted as service period.
Any contract terms which is against the law/act of the land is null and void from the very begining
10th May 2013 From India, Pune
Dear Mr.Prakash Rathi,
If you resign after 4th Aug.2013, you will complete a period of 5 years continuous service whether it may be Trainee, Temporary or Permanent and you will be entitled for Gratuity as per Gratuity Act. It is not will and wish of any employer to consider some of the period as in service or not. If you resign before 4th Aug.2013, you will not be entitled for Gratuity.
Ramesh Rao
10th May 2013 From India, Hyderabad
Dear Prakash,
As per the details provided by you i can suggest these steps.
You have successfully completed your training for one year and also completed your bond period in the organisation. Your total service as on 4-Aug-2013 is 5 years completed. Now among these 5yrs, 1yr is your training which is not considered as service period as per your bond with the company. So now you are left with 4yrs of continuos service after the training. You need to apply for gratuity after completing another 6 more months of service in the company. Because as per gratuity act and recent amendment by the law state that an employee should have completed 4yrs 6mths or more service in the company is eligible to claim gratuity. Then you can apply for resignation and approach your finance person with the service completed details for processing of gratuity.
Chandana Hyma
HR Professional
10th May 2013 From India, Hyderabad
Thank You all for your reply.
Kamal Prasoon Sinha Sir,
Please provide me some documents for the same or some method to prove it.
Ramesh Rao Sir,
it means that the notice period will not be count as service period??
Chandana Hyma Sir,
please tell me why training period shall not be consider as in service, even though they have deducted PF for the same period??
if i want to resign in Augest 2013, then i will loose Gratuity???
Please some senior member can provide light on this issue.
10th May 2013 From United States, Ashburn
Dear Mr.Prakash,

You got PF Contributions from Training period and it self proving that you are in continuous service from Training period onwards. In your case the 4 years bond is relating to your employment period for the retention policy of your employer. Your bond with employer will can't dictate the Gratuity Act. As per Gratuity act Continuous service means without any break (Discontinuation) in the service only. The continuous service may be included Training Period, Probation period and Permanent what ever it may be. Notice period will not be counted in continuous service period.

One more thing please not that, the Reckoning of Service period will be considered after 5 years of Continuous service as follows:

Over and above 6 months will be treated as one year. i.e 5 year 5 months will be treated as 5 years only and 5 years 7 months will be treated as 6 years. This Reckoning of over and above 6 months will be considered after completions of 5 years continuous service only but not for below 5 years continuous service.


Ramesh Rao

10th May 2013 From India, Hyderabad
Some other points need to be considered :
- what were you doing during training ? Were you doing actual work ? Or just learning ?
- was it defined as an apprentice under the apprentice act or standing orders ?
- when was your appointment letter given ? Did you get an appointment letter after completion of training ? Or before training started.
11th May 2013 From India, Mumbai
Dear All,

little Modification in original query - Actually it was written in the Appointment Letter that the training period shall not be considered as service.

Ankita Mam,

Actually i had to serve total 4 years under bond which includes the training period also.

my question is that if PF was also getting deducted for training time, than that should be considered as service period...

as per your reply. I understand that i am eligible for gratuity if i resign on 4th August 2013.

Saswata banerjee Sir,

i have given Appointment letter in August 2008 with the subject as "Appointment as Engineer Trainee-2008", then it August 2009, i got a letter with the subject as "Confirmation of your Appointment", which is we are absorbed in company's Executive cadre.

and in my training period, i have been provided with 4 months Educational training at MIT Pune, and after that 8 months we are on "On Job training (working on project but that is considered as learning the work)".

please provide some method through which i can get my gratuity as Company is not accepting the same.
11th May 2013 From United States, Ashburn
You are very much liable to gratuity as I said you have completed 5 years of tenure.
And regarding July's resignation, if you can wait for 1 month's time, why risk it. Gratuity is a nice amount to be let go.
Actually in order to complete the continuous service term, as I said working for 240 days is enough but there is always a debate if the eligibility starts after 5 years or even 4 years and 240 days of service.
So in my suggestion if you can wait for a month, wait before you put down paper.
Hope it helped.
11th May 2013 From India, Mumbai
Sorry, but there is a good chance you are not eligible.
Out of the 5 years, 4 months is spent in classroom session and another 6 months spent on projects. This will support the employers stand that the first year is not employment / service. Definitely they can hold that as true for the first 4 months when you were at MIT and not at work. If others from your class at MIT also required to go through on job project work, it will further strengthen the employers stand.
Still, you may try and take up the matter through the gratuity authority. However, remember that by fighting with the company, you are going to ensure that you get negative feedback in any future background check. Are you ready for that ?
Incidentally, your location is showing in USA. Are you working in india ? Or USA ? Because the laws applicable are different
11th May 2013 From India, Mumbai

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