Gratuity Eligibility Confusion: Does Working 240 Days in Year 5 Qualify for Benefits?

Eligibility for Gratuity: Clarification Needed

Though there are a lot of postings and volumes of material on the subject uploaded, I have one very basic question regarding the eligibility of gratuity:

• The minimum 5 years of service for gratuity eligibility, and
• When an employee works 240 days in a year, it is assumed that he has completed the year.

Now, the situation is if an employee worked for 240 days in the 5th year of service but did not complete the 5 years, would he/she be eligible for the gratuity? I would like to know your views on this; please provide a reference if you have any (enactment or judgment).

Thanks & regards,
S R Shivrayan

As per my knowledge, if any employee completes 4 years and 8 months in their services, they will be eligible.

Regards

Payment of gratuity can only be made after the completion of 5 years of continuous service. Secondly, 4 years plus 240 days in the 5th year should be considered the completion of 5 years of service.

Regards,
Sumit

Anything better than the statutory requirement is good, and companies are allowed to exercise the option. However, here I am seeking clarification on the legal position. If someone could shed some light on this, I would appreciate it. My inquiry is limited to the period of 4 years and 240 days to 5 years only.

Regards, S R Shivrayan