Is a Temporary Employee's Service Counted for Gratuity? Seeking Clarity on Eligibility and Legal Basis

Dear all,

In my industry, there is a person ready for retirement. He worked from 1998 to 2003 as a temporary employee. After that, he was regularized, and his service was confirmed. Now I want to prepare his full and final settlement.

The question is, can I take his gratuity service from 1998 onwards or not? That means, "Is a temporary employee eligible for gratuity or not?" If he is eligible for gratuity from that temporary service, on which basis (please mention the act and section) is he eligible?

Please help me.

Dear,

There is nothing like permanent, probation, temporary, casual, etc. for entitlement or non-entitlement of gratuity for an employee. If any person has worked in the capacity of an employee as defined under Section 2(e) of the Payment of Gratuity Act, 1972, then he becomes eligible to receive gratuity from the employer if he has rendered five years or more of continuous service with the same employer. Thus, he is entitled to receive gratuity for his temporary employment as well.

Opinion submitted as requested.

Regards,
R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Dear Mr. PVK Pradeep,

I agree with the suggestion of Mr. R.N. Khola. The employee who has continuous service for 5 years is entitled to gratuity as per the provisions of the Gratuity Act. This enactment does not define the category of employees who are eligible. Except for an Act apprentice, all categories of employees are eligible to receive gratuity if they work for 240 days in a year and have worked for not less than 5 years of continuous service.

In my opinion, the service completed by the employee under reference as a daily wager or NMR or temporarily should also be taken into consideration to determine the payment of gratuity.

Regards,

N.V. Rao
Hyderabad

Yes,

The wording above states that an employee should complete 240 days in a year to be eligible for gratuity after working continuously for 5 years, regardless of whether they are on temporary, permanent, contract, etc.

With regards

The same problem happened to me as well. I joined X company on 25th May 2009, and from 1st September 2010 onwards, the company confirmed my permanent status. I resigned in November 2014. By my calculation, I completed over 5 years in this company starting from 25th May 2009, but the company has not provided the gratuity payout.

Kindly assist me with this matter.

Thank you.

I was appointed on permanent employment after my earlier retirement when I was 62 years old. Upon reaching the age of 67, the management transitioned me to a contract basis without any break. I have now completed 5 years and 6 1/2 months with the same company. However, the management now states that I am not eligible for gratuity. Is this accurate? Please help me.

Requesting your assistance with the following query:

How to calculate gratuity for a part-time employee?

1) If an employee's basic salary is Rs. 240 per day or a rate of Rs. 30 per hour, and he completes his gratuity tenure.