Gratuity Eligibility: Does 4 Years and 10 Months of Service Qualify for Benefits?

If any employee has completed 4 years and 10 months and left the job, will they be eligible for gratuity? Is there any judgment on this matter?

An employee who has completed 4 years and 10 months and left the job will be entitled to receive gratuity if they have worked for 240 days in each of the four years and also for 240 days in the ten months after four years.

Regards,

If he completed 4 years, 5 months, and 15 days, it can be considered as 5 years, and he is entitled to gratuity.

If he had worked for 4 years, 5 months, and 15 days, he would not have completed 240 days during the last year and, therefore, will not be entitled to gratuity.

Regards,

Harikrishnan Sir's reply is the correct rule. The employee needs to have worked for 240 days in the fifth year to be eligible.

Dear Challagolla, any employee who has completed 4 years and 240 days is eligible for gratuity as per the different High Courts and the Supreme Court. 240 days of working in a year make it a whole year of service as per the Law of the Land.

Madras High Court Judgment on Gratuity Eligibility

As per the Madras High Court judgment (1998 LLR 1072), if a person works for 4 years and 10 months, they would have completed 5 continuous years of service (assuming they worked for 240 days in the preceding 12 months), and the person would certainly be entitled to Gratuity. In case they are working in an establishment that operates 5 days a week, instead of 240 days, you would need to factor in 190 days as the basis for deciding a completed year of service. Days on which they were sick or on authorized leave would also be counted as days worked. A person having worked for 4 years and six months (less than 240/190 days) would certainly not be eligible for Gratuity.

Regards,
Dr. R. Krishna Murthy

If he has completed 4 years and 6 months, he is eligible for gratuity. Alternatively, he should have completed 240 days over the past 4 years to be eligible, including the total number of government holidays and week holidays. I hope this information is useful.

I worked as a Lecturer from 01-08-2001 to 20-07-2011 in a self-financed polytechnic run by a trust in Haryana. Am I eligible to receive gratuity under the Gratuity Act?

Thank you.

Regards

Yes, you are eligible for the gratuity provided you have completed 240 days in these 10 months. For your reference, I am attaching the Madras High Court judgment copy.

Regards.

As per the rule, gratuity is given to those employees who continue service in a company for 5 years, and after 6 months, we count it as 1 year. Therefore, after 4 years and 6 months, an employee becomes eligible for gratuity.

Thanks.

The person has to complete 240 working days in the fifth year also; only then will he be eligible for Gratuity.

Regards, Kumar

Even in the case of an establishment that operates for 5 days a week, an employee would be deemed to have completed one year of continuous service only if they have worked for 240 days and not 190 days. Factoring in 190 days is not permissible. Section 2A of the Payment of Gratuity Act, as amended, specifically states which days could be counted for reckoning 240 days and the circumstances in which a particular type of absence would be regarded as a break in service. Section 2A of the Payment of Gratuity Act does not contemplate factoring in 190 days.

With regards,