Is an Employee Eligible for Gratuity After 4 Years and 10 Months of Service?

Good Evening Everybody, Please confirm whether an employee who has completed continuous 4 years and 10 months of service in a company is eligible for Gratuity. Please forward any provisions in the act regarding the same.

Regards,
NAIB SINGH

Gratuity is paid on completion of 5 years of continuous service, on superannuation, or resignation after 5 years, and not before 5 years unless the termination of employment is due to death or permanent disablement.

Hi Shreekant,

Thanks for your information. Please give me your answer to my question. I am working in a reputable MNC (BPO). If an employee works 6 years in a company:

Case 1: From joining to 3 years, works as a full-time employee, and for the next 1 year as a part-time employee due to some reason, then shifts back to a full-time employee until the last day (at the time of leaving, they are a full-time employee). In this case, how are they eligible for gratuity?

Case 2: Up to 4 years, they work as a full-time employee, and at the time of leaving, they are a part-time employee. In this case, how do we calculate their gratuity, and which salary do we need to consider?

Please clarify these two cases. I am facing the same cases in my company.

Dear Gupta,

Case 1: Gratuity is paid to a regular employee who completes 5 years of continuous service and at the time of retirement, death, or permanent disablement.

Case 2: The act is silent about part-time employment unless the employee is a piece-rated employee, a monthly-rated employee, or engaged in seasonal employment. Hence, the permanency of the employment is taken into consideration here as well.

Seniors, we require your suggestions.