Is an Employee Eligible for Gratuity After Completing 240 Days in the Fifth Year?

Eligibility for Gratuity Under the Payment of Gratuity Act

One employee joined our concern on 23rd April 2006 and resigned on 13th March 2011. The employee is claiming that since he completed 240 days in the fifth year, he is eligible for gratuity under the Payment of Gratuity Act. Please let me know whether his claims are justified or not.

Regards,
Aniruddha

One employee joined our organization on April 23, 2006, and resigned on March 13, 2011. The employee is claiming that since they have completed 240 days in the fifth year, they are eligible for gratuity under the Payment of Gratuity Act. Please let me know if their claims are justified or not.

Payment of Gratuity under the eligibility section requires a person to complete 5 years. It is stated in Section 4, sub-clause 1, of the Payment of Gratuity Act.

However, we cannot consider 4.6 years of service for gratuity payment as it would violate the act. If an employer believes it should be provided, then it is well and good.

Please guide me if I am wrong or not correct.

Regards,
Kashinath.