vijay vaidy

Hello, Good Morning! I have a little query - if any employee has completed 04 years 11 months and few days, is he is eligible for gratuity. Please confirm.
From India, Vadodara

Yes, he is eligible to receive gratuity as though he has completed 5 years of continuous service. Gratuity is a social welfare benefit and a beneficial interpretation is to be given.
From India, Mumbai

Legally speaking an employee has to complete five years of service for getting his gratuity to be paid. In the present scenario, some with less than five years of service went to court for claiming gratuity explaining their trouble in completing five years of service with the employer. Court also given judgement in favour of employee as a humanity consideration.

There is no amendment passed in Gratuity Act for inclusing of this type of eligibility and hence If the employer is compassionate enough, he can consider for five years gratuity other wise he may refuse also in that case, vetting with court is the only option,

From India, New Delhi

Dear Vijay,
As per THE PAYMENT OF GRATUITY ACT, 1972, Sec: 2A Continuous Service - Four years + two hundred and forty days, completed in a last year service he/she is eligible for gratuity.

From India, Coimbatore

The employee has completed 04 years 11 months and few days is not eligible to get gratuity. Because the employee has not completed 05 years of continuous service. In this regard employee should be asked to complete his 5 years of service to eligible for gratuity because it is matter of few days.

The employee may cite the example of the Court Order, unfortunately not accepted in Act till now.

From India, Mumbai
The best practice is - HR should proactively inform the employee before accepting the resignation
In my last job, Due to this reason I was stayed for 5yrs 5 days!

Our HR and seniors were proactive and good!

From India, Morvi
Yes he is eligible for gratuity and can opt for it.

Provisions of Section 2A(2)(ii) suggest that service for a period of 240 days during the final year shall count to be a period of one year.

2A. Continuous service.--For the purposes of this Act,--
(1) -----------------------------------------------------------------------
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer--
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;

From India, Kochi
As per gratuity act If an employee has completed a total of 240 actual working days, then that year is considered as completed year of service and hence if an employee has completed 4 years plus 240 actual working days, he Shall be eligible for gratuity of 5 years.
From India, Delhi
Dear all,

As per my understanding, to avail Gratuity first 05 years continuous services is compulsory. 240 days clause is for such cases suppose individual has worked for 8 years but in his 04 year or 06 year he has not worked for 240 days due to any reason that year will be reduced and he will be entitled for 07 years Gratuity. That different matter on humanity ground Court might have given decision in Favour of employee.

Pls. correct me if I am wrong.


From India, Mumbai
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