"During this period of a minimum of 5 years of service, if in any calendar year of 12 months an employee, for reasons given, has not completed 365 days of work but has completed 240 days (or as applicable), then it will be considered that the employee has completed continuous service for that year. Therefore, if an employee joins on 01/01/2000, he completes 5 years on 31/12/2004. However, if the employee resigned on 31/08/2004, even though he would have worked more than 240 days in 2004, it will not be considered as a full year, and thus, not completing 5 years. Consequently, he would not be eligible for gratuity."
Eligibility for Gratuity as per Madras High Court Order
As per the Madras High Court order, in order to be eligible for gratuity, an employee should have at least 4.8 years of continuous service with the employer.
Service Consideration in a Calendar Year
An employee is considered in service in a calendar year provided he has worked for:
- 190 days in case the employee is employed below the ground (4.6 years) - For mining staff {working below the ground}
- 240 days in any other case (above the ground - 4.8 years) - For office/field staff
Thank you.