Can I Legally Claim Gratuity After 5 Years, Including My Trainee Period?

Hi,

I have worked with my previous employer for a period of 5 years and four months. On claiming gratuity, I was informed that the first year of employment will not be considered for the calculation of gratuity as I was at the post of "management trainee" (post that I was promoted to assistant manager).

The previous employer contends that gratuity is not payable as I have not completed 5 years as a permanent employee. Our staff rules/company guidelines also do not mention anything like this. Can I claim gratuity legally? Kindly advise.

Regards,
Kanchi.

Hi Kanchi,

As per Section 2(e) of the Payment of Gratuity Act, except for an apprentice appointed under the Apprentices Act, every other person employed by the organization is eligible to claim gratuity on completion of 5 years of continuous service.

Best wishes,

Sunil Joshi
PGCHRM - XLRI

Dear Raj,

You worked for one year as a trainee. Therefore, you worked as an employee for 4 years and 4 months, and you did not complete 5 years of continuous employment in that organization, so you are not entitled to gratuity.

Thank you,
Raj

Hi Raj,

So far, an employee is not an apprentice, he/she is eligible for gratuity on completion of 5 years of continuous service.
"Trainee is not an apprentice" - this is what the labor court cited in a case between Chairman cum Managing Director, Orissa Mining Corporation vs. Controlling Authority, Assistant Labor Commissioner & others (1994 LLR - Labour Law Review, 789).

Best wishes,
Sunil Joshi
PGCHRM - XLRI