Understanding Gratuity: Who Qualifies and What Are the Requirements?

My questions are:

1) What is the total minimum amount of service period required for an employee in an organization to be eligible for Gratuity?
2) Are all employees (Permanent Staff as well as Staff on Company Contract basis) eligible for Gratuity?
3) Is Gratuity mandatory for every organization?

Dear all,

Whosoever has completed five years of service in an organization is eligible for gratuity, irrespective of their capacity. Gratuity is applicable to all organizations having 10 or more employees.

In the case of death, legal heirs are entitled to gratuity regardless of the number of years of service.

Regards,
J. S. Malik

Can you shed some light on the following:

1. Relationship Between Gratuity Eligibility and Days Present

Is there any relationship between gratuity eligibility and the number of days present in a year? I mean, if an employee is present for less than 240 days in a year, will this year be counted towards making them eligible? Can there be a break in the total length of service, and what impact will it have on the calculation of gratuity?

2. Earned Leave Calculation

Does an employee earn leave if they remain present for less than 240 days in a year? Is earned leave calculated based on total presence during the whole year, or is it calculated daily, weekly, or monthly?

Thanks and regards,
Rakesh

Dear Mr. Malik, Can you shed some light on the following:

Gratuity Eligibility and Employee Presence

1. Is there any relation between gratuity eligibility and the number of days an employee is present in a year? If an employee is present for less than 240 days in a year, will this year be counted towards making them eligible for gratuity? Can there be a break in the total length of service, and what impact will it have on the calculation of gratuity?

Leave Entitlement Based on Presence

2. Does an employee earn leave if they remain present for less than 240 days in a year? Is the earned leave calculated based on the total presence throughout the year or is it calculated daily, weekly, or monthly?

Thank you and regards,
Hitesh