Gratuity Eligibility: Does Resigning Just Before 5 Years Affect Your Payment?

In a Pvt Ltd company, if an employee gives voluntary resignation after completing 4 years, 11 months, and 29 days of service, is he eligible to receive gratuity?

The employee is entitled to gratuity.

Regards,
Madhusudan

Yes, sir, he will get gratuity because in the 5th year of his service, he is completing 11 months and 29 days of service. If you refer to the "Continuous Service" clause under the Payment of Gratuity Act, you will find that in the 5th year, he is completing 240 days of service with the company.

Regards,
A.K. Hati

Gratuity Eligibility in a Private Limited Company

As a part of a private limited company, an employee has been working for 4 years, 11 months, and 29 days. Meeting this criterion is essential. However, if the employee does not work a minimum of 240 days per annum, this condition does not apply to the Gratuity Act. Therefore, you need to verify the number of working days for Gratuity Act compliance.

Regards,
Dipal Patel