Gratuity eligibility - CiteHR
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trainees and probation employees are eligible for gratuity.? i.e if an employee served for 5 years including 1year training/probation is eligible or not.?
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Dear Muhammed Asif,
I would like to draw your kind attention to the definition of the term "employee" as given u/s 2(e) of the Payment of Gratuity Act,1972. The definition explicitly excludes apprentices and includes all other persons employed on wages. Besides, as per the judgment of the Orissa High Court in the Chairman cum Managing Director, Orissa Mining Corporation v C.A under the P,G.Act,1972 [ 1995 (1) LLJ 381], a trainee is an employee under the P.G Act,1972. Therefore, every employee is eligible to claim gratuity under the Act for the entire service rendered in the same organisation including the period spent on training and probation on payment of wages.
Dear Umakanthan Sir,
Thank you for the clarification.
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