Understanding Gratuity: How Do Breaks Affect Eligibility After 5 Years?

Dear Friends,

Gratuity rules state that gratuity should be paid for 5 years of completion (240 days in a year). However, there are some scenarios that may cause confusion:

1. What if someone has completed 4 years (240 days), then not fully completed 1 year, and then completed another 5 years (240 days)?
2. If someone has completed 10 years (240 days), then taken a 2-year break, and then completed another 12 years (240 days).

I am slightly confused about these situations. Please help clarify.

Thanks!

In the sense, what would happen if he was on sick leave? Or suppose he got into an accident while on the job and on sick leave for the same? Please mention this first.

If break of service is not regularized, then no gratuity is payable for that particular year(s) only. In other words, if his absence for such a number of days or years was approved, then he will be eligible for gratuity, but the amount of gratuity shall be restricted to the years during which he worked for 240 days each. Again, an employee who is otherwise eligible for gratuity but during any year he worked less than 240 days due to any reason for which he was not given any charge sheet or no disciplinary action was taken against him, will be eligible for gratuity for that year also, provided he had at least worked for 190 days during that year. Needless to say, absence due to employment injury or maternity leave will be counted as days worked for the purpose of determining eligibility for gratuity.

Regards, Madhu.T.K