5 Years Continuous Service - Gratuity

In furtherance to clarification on gratuity calculation, I would like to know on the issue relating minimum qualifying service which is 5 years.
There are divergent views on the issue. According to one school of thought, if the employee has completed 4 years of services and worked 240 days in the 5th year, he will become eligible for gratuity.
Another school of thought says that one needs to complete 5 years of continuous service and then only, he will be eligible for gratuity. The rounding off concept will apply only after completion of 5 years of continuous service.
Can any body guide me on the issue.
thanks & regards
prakash k

Dear Prakash,
Without the completion of 4 yr 12 month one can not avail his gratutiy claim.
With best wishes.
R Shanti

Dear Praksh,
R. Shanti is right, after completing 05 years of continuos service an employee may be eligible for Gratuity.

Naah...
There are two aspects of it.
One is policy making, valuation of liability for accounting purpose and creating reserves.
The other is actual payments.
So when your company is drafting policy and doing the finance task, you account for completion of 5 years of service only.
When there is a claim follow the below mentioned rule
Law
1. Completion of 5 years of service
2. Completion of 4 years and 240 days of service is last year is also accepted as rounding-off law
3. Madras High-Court Judgement : 240 days can also include the sundays and other national holidays as the same are non avoidable and hence 240 days can also be read as 4 years and 8 months.
Advise
If there is a case where an employee has completed 4 years and 20 days/ 8 months of service, pay him the gratuity. ( If he turns to law, Jail is upto 3 years with financial penalty), apart from disgrace to the employer.
Still doubts, consult your legal team.