Gratuity Eligibility: Can You Claim It After 4 Years and 240 Days of Service?

If an employee leaves an organization after serving 4 years and 240 working days (not completing the last year, the 5th year), will they be eligible to receive gratuity?

Regards

If an employee has completed 4.6 years in the organization, which is approximately 5 years, they are eligible for Gratuity.

Which section/rule of the PG Act, 1972 directs us to pay gratuity in the situation as explained by you?

Regards,
R N KHOLA

I am enclosing the attachment herewith for your kind reference, originally posted by seniors. Thank you.

Regards,
Ashish Thakkar

As per the judgment by the Madras High Court by the Hon'ble Mr. S.M. Abdul Wahab, J. vide W.P. No. 2135 of 1987 decided on 12.6.1996 in the case between Mettur Beardsell Ltd. (represented by its Personnel Manager) Madras Vs. Regional Labour Commissioner (Central) Authority,

PAYMENT OF GRATUITY ACT - 1972

Sections 2(a), 2(b), 2(c), 2(e), and 2A - 'Continuous service' - Qualifying period of service by an employee - Entitlement of Gratuity. An employee rendering continuous service for a period of 240 days in a year will be deemed to have continued in service for 'one year' as stipulated by section 2A of the Act. Thus, an employee who has put in service for 10 months and 18 days for the fifth year subsequent to the first 4 years should be deemed to have completed continuous service of five years. His claim for gratuity is tenable.

Regards,
Vivek

Based on my knowledge in HR, he is not eligible for gratuity as he must work for 5 years from the date of joining.