Am I Eligible for Gratuity? Understanding Notice Period and Leave Days in Calculation

Hi Team, I wanted to know if I will be eligible for gratuity. My date of joining is 2nd July 2007. I am planning to resign on 1st Feb 2012, and I will be serving a 1-month notice. Will the notice period also be considered?

Eligibility Criteria for Gratuity

As per other citations on the website, we need to have 4 years and 240 days to be eligible. Does this 240 days include:
- a. Saturday/Sunday and public holidays given by the company?
- b. Does it also include the leave taken by the employee?
- c. Does it include the notice period that I will be serving in the organization?

Please help me.

Regards, Raj

The reply to your queries is as follows:

1. Saturdays, Sundays, and public holidays are to be included.
2. Leave with wages to be included.
3. Notice period to be included provided you attend duty during the notice period or remain on authorized leave during the said period.

Regards,
B. Saikumar
HR & Labor Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Mob: [Phone Number Removed For Privacy Reasons]

Hi Sai, this is Raj. Could you also let me know if any LWPs need to be subtracted from this? I am in a similar situation, and there have been two blocks of LWPs in my tenure. I took 20 days of LWP within the first year of joining and then another 20 days of LWP in the fifth year. Will these have any impact on the total number of days worked? Please clarify and help!

Regards, Raj

Even when an employee has completed 5 years and their total number of working days is less than 240 days in the fifth year, they are not eligible for gratuity. Leave Without Pay (LWP) is not counted as a working day or paid leave. Since you have worked for more than 240 days (I assume you have completed 5 years or a minimum of 4.9 years), you are eligible for gratuity.

Regards,

I can't clearly say since you have served only 4.8 years (240 days - assuming 1st March as the relieving date). Moreover, if you had any loss of pay (LOP) this year, then you will not be eligible. Even if you are short of 1 or 2 days, you will still not be eligible. Please discuss this with your HR. When you finally hand over, kindly check your Full and Final (F & F) statement where they will mention your gratuity amount.

Normally, they will calculate for 5 years only, so please discuss with your HR and ensure you have completed 240 days before leaving; else you cannot get it. Even if you go through legal means, you cannot get your money if you have served less than 240 days.

Please review the information provided and take necessary actions accordingly.

Thank you.