The 'Gratuity Act' very clearly states that the period of service has to be 5 years. This period of service has to be counted from the starting date of employment to the last day of employment. If this period of service is a minimum 5 years, then the employee is eligible for gratuity. In case the employee dies during the service period before completing 5 years, gratuity is payable and the nominees will be the beneficiaries of the gratuity. In cases where the employee does not work a full year during any of the years while in service, that is he works intermittently or has taken various kinds of leave with or without pay, or there has been strike or lockout, if he has worked for 240 days during the year (including eligible leave or holidays etc.), then that year will be counted as a completed year. If he has worked for a minimum 240 days per year for 5 continuous years, he is eligible to receive gratuity, provided five years have elapsed from start of employment to ending of employment. If the period of employment from start to end is 4 years and 11 months, the employee is not eligible for gratuity.