Gratuity Confusion: How Does the Lalalappa Case Affect 7-Year Tenure Calculations?

Dear all,

If a worker has completed 7 years in an organization but within these 7 years, he could not complete 240 days in two years, then for how many years will gratuity be payable? Also, what is the relevance of the Lalalappa case in this?

Please help.
Vijay

If the employee did not work for 240 days in a year, no action was taken against them. However, if the days of loss of pay were approved, the employee will be eligible for gratuity. Please follow the link provided for more information: [Payment of Gratuity](https://www.citehr.com/140199-payment-gratuity.html#post593985).

Regards,
Madhu.T.K

Hi Mr. Madhu,

I wanted to bring to your attention a concern about the company's gratuity policy. Despite an employee's service of 7 years, they are only receiving gratuity payment as if they had worked for 5 years. The reason given is that the employee did not complete 240 days in two years.

Based on the information from your link, it appears that if a notice has been issued stating that the employee is not eligible for gratuity payment, then the company may not be obligated to provide it. However, in cases where such a notice has not been issued, the employee should rightfully receive gratuity for the full 7 years.

Thank you,
Vijay

Yes, because a break in service, once regularized, will become continuous service, thereby enabling the employee to receive gratuity for the year in which the break took place.

Regards,
Madhu.T.K