Does the 3-Year Apprentice Period Count for Gratuity Eligibility in Your Company?

Dear Seniors, in our company, we engage blue-collar employees initially as "Apprentices" under our certified Standing Orders of the company for a period of 3 years (not as Trade Apprentices under the Apprentices Act, 1961). On successful completion of the apprenticeship period, they are moved to the regular employment category. Now, the question is whether we have to consider the 3-year Apprentice period at the time of calculating gratuity eligibility.

Regards,
Ravichandran M

Based on my understanding, you will not need to count these three years. Since you are filing returns under the Apprenticeship Act, these individuals are not considered your employees.
Regards

As far as my knowledge goes, you will not have to count these three years since you are filing returns under the Apprenticeship Act. These individuals are not considered your employees.

Attribution: https://www.citehr.com/424328-gratui...#ixzz233CeBI3X

Apprenticeship Period and Gratuity Calculation

If the period of apprenticeship is as per certified Standing Orders, then the period shall be treated as a training period and need not be counted for gratuity calculation. On the other hand, in the absence of standing orders, such trainees will have the status of employees.

Regards,
Madhu.T.K