Gratuity Confusion: Am I Eligible and Who Pays If I Resign After Six Years?

Gratuity Eligibility and Responsibility

I have been working at a private school in Delhi since March 2010. Initially, I was offered a one-year contractual employment with a consolidated salary. In 2011, I entered a one-year probation period with a pay scale similar to the Sixth Pay Commission PB-2 with GP 4800. The following year, in 2012, I was confirmed in the same scale with an annual increment.

Since 2010, the school has provided me with Form 16, showing TDS deductions made by a trust owned by our school President (owner). The Principal of the school serves as my Appointing Authority.

I have some queries:

1. Would I be eligible for gratuity if I were to resign from my position in February 2016?
2. If yes, would the year of contractual employment be included in the calculation of gratuity?
3. Who would be responsible for paying my gratuity – the school that hired me as per the appointment letter or the trust issuing Form 16?

With regards,
Pablo

Dear Pablo,

Yes. The nature of your appointment, i.e., fixed-term appointment or regular appointment, does not matter for the payment of gratuity provided there is no break in your service under the same employer. The Trust is liable to pay gratuity, of course, through the School run by it.

Well, Mr. Paul! The Payment of Gratuity Act states that a minimum service of 5 continuous years is required for gratuity payment. There is no guideline regarding the kind of employment. As long as your service is continuous, you will receive gratuity. Your service starts counting from 2010. The one who employed you is responsible for the payment of gratuity, i.e., your principal.