Gratuity Eligibility Confusion: How Do We Handle Less Than 240 Days of Service?

Gratuity Eligibility Issue

Recently, we have noticed an issue with gratuity. This is a new regulation for us: if an employee has not worked for at least 240 days in a calendar year, the law states that he/she is not eligible to receive gratuity for that year.

The employee in question has been with the company for over six years, and the management has requested us to examine this particular clause. Can you please provide me with a detailed explanation?

Please find the attached file. The details are highlighted in Section 2A - Continuous Service.

Thank you.

Regards,

If an employee does not complete the continuous service for a period specified in the Gratuity Act, he/she is not eligible for payment of gratuity.