Dear Mr Chopra,
I know that you are raising this doubt only for inviting responses from other members. Because this issue was discussed many times in this forum or cite legal. However, once again I give my interpretation. For payment of Gratuity -
1. First of all the Payment of Gratuity Act 1972 ( please see Section 1(3)
2. The employee must under the definition Section 2 (e)
3. Gratuity shall be payable to an employee on the termination of his employerment after
he has rendered CONTINUOUS SERVICE for not less than five years. Section 4
4. CONTINUOUS SERVICE is defined in Section 2 A. If an employee has actually worked 240 days during the period of twelve calendar months preceding the date with reference to which calculation is made.
No where in the Act or Rules it is mentioned that the employee has to complete five full calendar year for becoming eligible for gratuity. Completion of 240 days can be treated as completion of one year of continuous service.
Hope this will clarify your doubt. In case of any doubt, please give the exact date of the employee joining the organisation to date on which he is terminated, number of days he actually worked during the last five years, year wise, and all information as per Section 2-A (1)