Gratuity Eligibility: Can 240 Days in the Fifth Year Count as Full Service?

Dear seniors,

The gratuity is payable only after completion of 5 years of continuous service under the same organization. In case the employee has worked for 4 years and 9 months, can he claim gratuity? If we consider the provisions of the Industrial Dispute Act - 1948, a person who has worked for more than 240 days in continuation is deemed to have completed continuous service of one year. Can the period of 240 days in the fifth year be considered as completed service of 5 years? What are the provisions under the Payment of Gratuity Act - 1972?

Prasanna N. Pathak.

If you have worked 240 days in the 5th year, you can claim gratuity under the Payment of Gratuity Act. If an employee has completed 4 years and 240 days in the fifth year continuously, he/she would be eligible for gratuity.

With Best Regards,
Priyadarshini

If one has completed 4 years and 240 days, they can claim gratuity for the full 5 years.

Regards,
Vaishalee Parkhi

This subject has been extensively discussed in the past on citeHR. Please search on this site to find a complete and authentic answer, which includes the Madras High Court's ruling that is currently valid.

Regards,
Suresh

I don't think one would become eligible to claim gratuity after 4 years and 9 months. The first criterion to accomplish is the completion of 5 years and subsequently 240 days in each year. Please read the act carefully.

Regards,
Murali

Hello, Mr. Pathak.

I think the views expressed by Sri Murali are correct. The eligibility criteria for qualifying for the payment of a gratuity claim is five years of continuous/uninterrupted service. In the past, this matter was also discussed in the citeHR platform, and several valuable authentic documents, rules, and acts are available.

Madam,

Yes, he is eligible to claim gratuity. Please refer to the Madras High Court Judgment on this subject. The same is also available on this site.

With Regards,
PRASANNA PATHAK
[Phone Number Removed For Privacy Reasons]

Dear Mr. Murali, It is not necessary to complete 5 years of service. 4 years and 240 days of uninterrupted service are enough to claim Gratuity. Please read the judgment given by MHC attached hereunder. Marked sentences will provide clarity on this.

Regards, KAR [Email Removed For Privacy Reasons]

I resigned from the organization after completing continuous service of 4 years, 11 months, and 12 days. During my full and final settlement, the company refused to grant me gratuity, stating that I have not completed 5 years of service.

I have raised the issue on the grievance portal. After several reminders, I have finally received a notice from the 'Office of the Controlling Authority Under the Payment Of Gratuity Act' to appear before them with all proofs and witnesses to justify my claim.

Please suggest what I should do now?

I resigned from the organization after completing continuous service of 4 years, 11 months, and 12 days. During my full and final settlement, the company refused to grant me gratuity, stating that I have not completed 5 years of service.

I have raised the issue on the grievance portal. After several reminders, I have finally been sent a notice from the 'Office of the Controlling Authority Under the Payment Of Gratuity Act' to appear before them with all proof and witnesses to justify my claim.

Please suggest what I should do now?