Am I Eligible for Gratuity After 5 Years at a Small Software Company?

I have been working with a software company for 5 years and 5 months. During my tenure, the total number of employees we had in the company was 9 full-time employees and 1 part-time accountant. She has been working for more than 3 years and is a direct part-time employee of this company. Am I eligible for gratuity?

Eligibility for Gratuity in Commercial Establishments

You will be eligible for gratuity provided your establishment is covered by the Payment of Gratuity Act. Your establishment, not being a factory, mine, or oil field but a commercial establishment, will be covered by the Act if it has at least 10 employees. Since your establishment has 10 employees working, it is covered, and therefore, you will receive gratuity.

Part-Time Employees and Gratuity

Various court judgments show that part-time employees should be treated on par with full-time employees regarding all social security benefits. Therefore, the status of employees, whether full-time or part-time, monthly paid or daily rated, is immaterial for the application of any labor law, including the Payment of Gratuity Act.

Regards, Madhu.T.K