Anonymous
Dear Friends, The Payment of Gratuity Act says that minimum 5 years of Service is required to become eligible for Gratuity.It also mentions and defines of Continuous service which says that if 240 days of service is rendered in a year including leave on account of sickness is considered to be 1 year.
However, I would like to seek clarification whether an employee who has completed 4 years 6 months, and 13 days of service will be eligible for Gratuity. Considering the fact that the employee is working for 5 days week with two days off. Request all to provide your expert opinion on the matter from legal point of view and in accordance with Payment of Gratuity Act.

From India, Thane
Dear Sumeet,

This has been an oft-repeated and oft-answered question.
However, it is quite unfortunate that still certain employers constantly refuse to understand the binding nature of a High Court's verdict on question of law arising out of a Central legislation particularly in the conspicuous absence of a contrary judgment by anyother High Court or the Supreme Court.
As per Sec.2-A(2)(a)(i) of the PG Act,1972, completion of 190 days service in an establishment which works for less than 6 days a week shall be treated as continuous service in a period of preceding 12 months.
In the case cited in your post, the employee is entitled to gratuity for a period of 5 years as he has completed 4 years and 193 days in the 5th year.

From India, Salem
Thank you Sir for your valuable information and time. Regards, Sumeet
From India, Thane

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