Gratuity Eligibility Dilemma: Can an Absconding Employee Still Claim Payment?

Dear Friends,

I am stuck on one point where I could not find any reference to resolve the issue. I need your help and suggestions.

If an employee works in a company for 4.3 years, then remains absconding for 2 years, and later puts in his resignation, is he still eligible for Gratuity Payment?

Awaiting your valuable advice.

Vkey

No. Entitlement to gratuity does not arise if there is no continuous service of 5 years.

U/s 4(1) of the Payment of Gratuity Act, 1971, the Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years only. The term “continues service” is defined u/s 2A of the said Act. Since this employee has worked only for 4.3 years he is not eligible for gratuity.

One has to put in 5 years of continuous service to become eligible for gratuity.

This employee has not worked for 5 years and is not eligible for gratuity.

Dear Members,

I also have a query: if the above-mentioned employee had worked for 4 years and 6 months, can we round off this period to 5 years?

Regards,
SACHIN

Thank you for your valuable guidance. I would appreciate it if I could obtain any case study or documentary proof to support the same for presentation to my management.

Vkey