In payment of Gratuity act there is mentioned about gratuity eligibility is continuous service of 5 Years, my query is that should we calculate the gratuity only when an employee completed 240 days in a year if it not so then should we ignore gratuity of employee for that year?
If it is so then kindly some body can provide its order copy?

From India, Pune
Dear Hemantkumar,
As per act you cannot deviate to void one year for calculation just because he/she had not worked for 240 days in the year. It is about DOJ and DOL. You need to count the same tenure.


Hi Hemanth,
It is actually based on your Employer. It is enough if the employee works for 240 days in the preceding 12 months ( after completion of 4th year) and it is not necessary that he should have completed one whole yearís service.
As the definition of continuous service in Industrial Dispute Act and Payment of Gratuity Act are synonymous, the same principal can be adopted under the act also and hence an employee rendering service of 4 year 10months 11days is considered to have completed 5 years continuous service under sec.4(2) and thereby is eligible for gratuity.
4 years and 6 months (190 days = 1 year) where the company follows 5 day a week
4 years and 8 months ( 240 days = 1 year) where the company follows 5 day a week is eligible for gratuity.
You can copy paste the below link for your reference
https://www.linkedin.com/pulse/gratu...ce-rahul-kumar

From India

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