Is My Company Right to Deny Gratuity Before 5 Years? Seeking Clarity on Indian Law

Hi Seniors,

I am reaching out to you for information on the Gratuity law in India. As per my understanding, it is 4 years and 240 days (8 months); however, my company is denying it for various reasons. They provide gratuity after 5 years but not before that. Could you please inform me if there are any hidden rules that prevent gratuity from being given for less than 5 years?

In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity to employees. According to the Act, an employee becomes eligible for gratuity only after completing a minimum of 5 years of continuous service with the same employer. The requirement of 4 years and 240 days you mentioned is incorrect. Therefore, your company is following the legal provision by providing gratuity after 5 years of service. It is essential for employers to adhere to this statutory requirement to avoid any legal implications. If you have further questions or need assistance in understanding your rights under the Gratuity Act, consider seeking guidance from a legal expert or the labor department.