Can Employees Get Gratuity if Laid Off Before 5 Years? Seeking Clarity on Rules

Gratuity Payment Eligibility

I need details regarding the payment of gratuity to employees. I know that as per the Gratuity Act, a minimum of 5 years of service is required to claim the gratuity amount. However, in a situation like lay-off or retrenchment, is an employee eligible for gratuity if they have served less than 5 years, even if there is no fault on the employee's part? Please provide me with the details.

Regards,
K S Thangaraj

Just enter your information. Every employee should have 5 years of continuous service in the organization; otherwise, they are not eligible for gratuity. After your second question, some organizations use their own rules and criteria for gratuity.

Please provide me with information on whether it is possible to receive gratuity in the case of death within 5 years. Is this related to the PF account number 0.50? Where is the gratuity determined, and what is the procedure for claiming it?

Yes, in case of death before 5 years, the employee is liable to receive gratuity for the tenure he has worked in the organization.

Section 2A states:

An employee shall be deemed to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service that may be interrupted due to sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing order, rules, or regulations governing the employees of the establishment), lay off, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

That means continuous service includes the days he had been laid off under the Standing Order or ID act.

Payment of gratuity:

1. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years:
- (a) on his superannuation, or
- (b) on his retirement or resignation, or
- (c) on his death or disablement due to accident or disease.

Cheers,

Mayuri

Dear Friends, I need details regarding the payment of gratuity to employees. I know that as per the Gratuity Act, a minimum of 5 years of service is applicable for claiming the gratuity amount. I have been working in my current organization for 4 years and 11 months. I will be giving my resignation letter in the last month of my gratuity period. Am I eligible for my gratuity?

Kindly provide me with the details.

Regards,
Sakthi Arun .M