Gratuity Eligibility: Can an Employee Claim It After 4 Years and 240 Days?

Hello Everyone,

In my company, I have a person who has completed 4 years and 8 months of continuous service. Is he eligible for gratuity? I know one has to complete 5 years. To see the continuity of service, 240 days should be completed every year. So this employee has not completed 5 years but completed 4 years and 240 days. Will he get gratuity or not?

As per your information, the employee has 4 years and 8 months of experience, but if the person completes more than 4 and a half years, it will be considered as 5 years (round off concept). They are then eligible to receive gratuity. This is the common process. Sometimes the company may have a rule that employees must exactly complete 5 years before gratuity payment is released to them. Please follow the common process I mentioned above.

Hi,

I need help here. I joined the job in March 2012 and left the job in March 2013. Then, I rejoined the same company in September 2013 and have been working with the same company since then. Will I be eligible for gratuity?

Gratuity Eligibility According to the Madras High Court

As per the Gratuity Act, one should complete a full 5 years of service. The Madras High Court gave a verdict that if any employee completes 4 years and 6 months of service or more, it should be treated as the completion of 5 years, and the employee is eligible for gratuity. This will be applicable to Tamil Nadu only.

Many employers are following the Madras High Court judgment as the gratuity payment is for the benefit of employees who have served their concern. Very few companies are strictly adhering to the full completion of 5 years of service.

Dear All,

Kindly suggest what is the time limit to clear the gratuity amount. If I left my company in June 2016, when can the company release my gratuity amount?

Regards,
Anand

Maximum processing time for the gratuity is one month. The employer will take a maximum of 30 days to process the employee's gratuity.

First employment was terminated in one year, and the second employment is continuing till date as per your email. You do not consider the first employment experience. You have to calculate the second employment working tenure. If it has completed 5 years, it means you are eligible for Gratuity. Hope you can understand this.