Gratuity [Thread 306831]

Sir,
Please clear my doubt.
An employee joined in an organization as an apprentice. He worked in the organization as an apprentice for a period of one year. Thereafter he worked in the organization for four years. After that he resigned his job. Should the organization provide gratuity to him? I request you to clear my doubt.
Regards,
S.David

The Payment of Gratuity Act says if an emplyoee worked in an organization for a period of 5 (five) years in an organization he is eligible to get gratuity.

Dear S. David,
An Apprentice is not an employee of the company.
Hence he is not eligible for Gratuity.
For him to be eligible for Gratuity he needs to complete 5 years of service.
Regards,
Viraj

Hi David,
Period of Apprentice shall not be counted as service for the purpose of gratuity.
Regards
R.Ponraj

pls see the defination of employee under the Gratuity act 1972 under section 2(e)
(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
so while we calculate the gartuity period we can not include apprentise period
so the above mention employee is not eligible for gratuity
ok ....
if you have any doubt pls write me.
Regards
jatin prajapati
HR exe

Dear David,
Pls note that he is not eligible for Gratuity payment.
Regards
Haris
Human Resources

Dear,
Apprentice covered under The Apprentices Act, 1961 - Defination [ (aa)] apprentice means - a person who is undergoing apprenticeship training in pursuance of contract of apprenticeship.
AND NOW SEE DEFINATION OF EMPLOYEE
defination of employee under the Gratuity act 1972 under section 2(e)
(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
Thus defination itself gives crystal clear idea that the mentioned person will not be eligible for Gratuity if has not completed continuous service for 5 years as an employee.
Hope this will help you...
prashant

I would like to add one more thing to what others have put. That is, apprentice means a trainee who is engaged as per Apprentice Act, 1961 or as per the provisions of the Certified Standing Orders of the company. Therefore, if the employee in David's case was actually engaged as an apprentice by registering himself with the Related Instruction Centre or was engaged following the specific provisions in this respect given in the Standing Orders, then only his training period of one year would be excluded from the service for deciding eligibility and or quantum of gratuity. In other words, if he was taken as a trainee just by designation the period of training will come under gratuity calculation. Please remember that for all labour related laws, like ESI, EPF, Industrial Disputes Act, Minimum Wages Act etc trainee other than the above stated apprentices will be treated at par with employee.
Regards,
Madhu.T.K

Hi,
Its true, that the trainees are of 2 types.
One is appointed to learn a designated trade for a specific period and after the period get over he has to quit. Second one are those who are appointed as trainee for specific period and when the period gets over he has been appointed / promoted as confirm employee. in the second case the person who joined as a trainee and has completed 5 years of eligible service is entitled for gratuity and while calculating gratuity period his trainee period should also get count.
prashant