Gratuity Eligibility [Thread 407715]

I am regularly reading this interesting site. Help me understand, if the employee is not resigning and employer requests the employee leave due to employer\'s business priority, is the employee eligible get gratuity if this separation happens before 5 years from the joining date?
Niranjan

Why should employee loose his benefit, as the employee is leaving due to business reasons. He should be given gratuity.
Muthanna

As a gesture of good will and courtesy and gratitude for the services, the employer may voluntarily offer gratuity and other terminal benefits to the parting employee.

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, on his superannuation or on his retirement or resignation or on his death or disablement due to accident or disease. Completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service including service which may be interrupted on account of sickness , accident , leave , absence from duty without leave . lay-off, strike, or a lockout or cessation of work not due to any fault of the employee.
This implies that the employee asked to leave the job as a result of employer's priority will be eligible for gratuity even if the spell of five years is not over.

Where does it say he will be eligible for gratuity ?
This is not interruption of service due to lockout or something like that. This is a termination of service. He stops being an employee at that point. Since he has not finished 5 years of work, he does not get gratuity. Whether he is terminated for business reasons or not does not matter.

Dear Muthanna
We are talking of a point of law, not the fairness of the employer. The law says you get gratuity only after having worked for 5 years. If you have not worked for 5 years, you do not get gratuity, irrespective of the reasons why you left (other than death)

Dear All,
If organisation terminate any Emlpoyee after completion of 3.5 years of his job, In that case Can Employee claim for Gratuity.
Akshat Vashistha

Dear all
The views expressed by Vishal Tripathy and Saswatha Banerjee are correct. In the circumstances stated by Akshat Vashistha, the employee is not entitled to get tratuity.
With regards

Dear Seniors,
Kindly help me out on this query too. If a employee is working with an organization without any appointment letter and without any terms and condition. In such case is the employee eligible for gratuity once he leave his job. (Employee has worked more than 5 year).
If yes then how can I calculate the gratuity without knowing his salary breakup.
Thank you in advance.
Regards
attribution https://www.citehr.com/493700-gratui...#ixzz31fihnFBL

Dear Mr.Nirankari
The employer employee relationship is usually proved by the production of the appointment order. In the absence of the appointment order the employer employee relationship has to be established through evidence which can be oral also. Or there may be some other documents like payment vouchers etc. which could be produced to establish employer employee relationship. Please note that the Payment of Gratuity Act does not specify that an appointment order is a must to establish employer employee relationship. The employer employee relationship is purely a question of fact to be determined based on the evidence either oral or documentary.
With regards