Gratuity Eligibility: Does 4 Years and 9 Months of Service Count in Resignation or Death?

Please let me know if an employee has completed 4 years and 9 months of service, is he eligible for gratuity in the case of death and in the case of normal resignation?

Gratuity Eligibility Without Completing Five Years

Some court rulings have made it unnecessary for a person to complete five years to receive gratuity. Therefore, this employee can be eligible for gratuity. Furthermore, if your company has covered its employees in the LIC group gratuity scheme, even five years may not be necessary in the case of death.

It requires a minimum of 4 years and 240 working days, or we can say a minimum of 4 years and 11 months. I want to confirm my thread from SRS.

Regards,
kscc

Some court ruling has stated that it is not necessary for a person to complete five years to receive gratuity. Therefore, this employee is eligible for gratuity. Additionally, if your company is covered under the LIC group gratuity scheme, even five years of service is not required in the case of death.

Gratuity Calculation in Case of Employee's Demise

Ma'am, I wanted to inquire about the calculation of gratuity in the event of an employee's demise. If an employee has worked for 4 years and 9 months, should we calculate the gratuity payment for 5 years or until the age of 58?

Regards

Yes, definitely he shall be eligible for gratuity under the Payment of Gratuity Act, 1972. Any employee who has completed 4 years and 240 days (continuous service) shall be eligible for gratuity.

In case of death, any employee who has completed even six months of service shall be eligible for gratuity.

With Regards,
Jignesh Sisodiya

Gratuity Eligibility for Trainee Period

One of our staff members has completed 5 years and left the organization, but for the first two years, he was a trainee. He later joined the company's payroll and became eligible for all company benefits (e.g., Bonus/PF/ESIC, etc.).

During the trainee period, there were no deductions from his monthly salary; it was a consolidated payment. Does he qualify for gratuity benefits from his trainee period?

Regards,
Hiten

Hi, since the individual was a staff member only after getting on the payroll, he is not eligible for gratuity for the trainee period. I am considering that during the trainee period, he was either paid a stipend or was on a third-party/vendor payroll.

Regards