Am I Eligible for Gratuity After Working a Six-Day Week for Over Four Years?

I am working in a private company which follows a six-day working week. I joined on 13.10.2010 and will be leaving on 18.05.2015. Am I eligible for gratuity payment?

Dear Perumal,

You are not eligible for Gratuity. Gratuity is actually eligible based on a worked duration of 4 years, 10 months, and 10 days. However, you completed your employment in 4 years, 7 months, and 6 days. Therefore, you are not eligible.

Siraj/HR

Dear Siraj,

Thank you for the information. However, I have heard from my friends that completing 4 years and 6 months of service can also be considered as completing 5 years and make one eligible to receive gratuity. Could you please clarify this for me?

Thank you.

As per the 'Payment of Gratuity Act 1972', an employee is entitled to gratuity on the expiry of 5 years of continuous service with an organization. In your case, you have not completed 5 years of service. Therefore, you are in no way entitled. Don't get upset. Look for the brightest future ahead. Thanks.

If you have completed 240 days in the 5th year, you are eligible for Gratuity. There is court's decision supporting this statement. You can check this on citehr also.

As per the provisions of The Payment of Gratuity Act, the eligibility for Gratuity is upon the completion of 5 years of continuous service.

The law states that in the fifth year, if the concerned employee has completed 240 days of continuous service, then they will be entitled to receive the Gratuity.

Please check if it's part of the CTC agreed upon as per the Appointment Letter, the gratuity amount is due and claimable. Many companies of Tomorrow believe in a flexi-package CTC and make payment of the unpaid amount of gratuity at the time of leaving, irrespective of your tenure, as it is a term of employment.

Regards,
RDS Yadav
Management Adviser and Trainer
Director, Future Institute of Management and Technology
navtaranghrs@gmail.com