Understanding Gratuity Act: How Are the 240 Days Calculated for Eligibility?

Clarification on Gratuity Act Eligibility

As per the Gratuity Act, an employee must work for a minimum of 240 days per year to be eligible for gratuity. Kindly let me know from which date the 240 days would be reckoned (starting from the date of joining or from the calendar month in which the employee has joined).

If an employee has worked for 7 years, out of which in 3 years he has worked for less than 240 days (calculated as per the Act), would he be paid gratuity for only 4 years? For calculating the number of working days as above, would leave days without wages be considered?

Thanking you in anticipation.

Best Regards,
Raghavendra Rashinkar

From the date of joining, if worked for less than 240 days, no gratuity is payable for those years. Leave without pay (LWP) is to be treated as days not worked.

Regards,

Vinayak Nagarkar
HR Consulting

Please find below the corrected text with proper spelling, grammar, and paragraph formatting:

---

Please have your answers to the query as follows:

1. Yes, qualifying for gratuity requires a minimum of 240 working days in a year.
2. Calculations are made from the date of joining to the date of leaving.
3. The number of years in which working days are less than 240 is deducted from the total period, i.e., the total number of years.
4. No, leave without pay is not considered.

P K Sharma

---

I have corrected the spelling, grammar, and formatting of the text to ensure clarity and correctness. Let me know if you need any further assistance.

No gratuity if the residual period, after the 3 years where he has not worked for 240 days, is 4 years.

---
No gratuity will be provided if the residual period, after the 3 years where he has not worked for 240 days, is 4 years.

Continuous Service and Gratuity Eligibility

Section 2A(1) states that an employee shall be considered to be in continuous service for a period if he has been in uninterrupted service during that period, including service that may be interrupted due to sickness, accident, leave, or absence from duty without leave (excluding absence for which an order treating it as a break in service has been issued in accordance with the establishment's standing orders, rules, or regulations). Therefore, if no order has been issued treating the absence as a break in service, the employee is eligible for gratuity even for years with less than 240 days of attendance.