Gratuity Eligibility: Can I Claim It After 4 Years and 7 Months of Service?

My DOJ: 20.09.2013

My Relieving date: 03.05.2018

Am I eligible for gratuity (4 years 7 months and 13 days)?

Not eligible to my knowledge.

Five years of continuous service are required to become eligible for Gratuity.

As far as I know, it may please be noted that 4 years and 240 days or 8 months is enough to qualify for a gratuity amount. However, in the 5th year, it will be paid on a pro-rata basis as the year is not complete. I hope this clarifies the situation.

Please write an email or letter to them in the first instance and follow up. If needed, you can approach the concerned HR department to seek clarification. Alternatively, you can also approach the labor court and seek their intervention in your case.

However, kindly note that there should be no break in service during this period.

Thank you.

Please go through the following paragraphs to get a better understanding in case you have not yet done so.

Payment of Gratuity

Gratuity shall be payable to an employee upon the termination of his employment after he has rendered continuous service for not less than five years:

(a) on his superannuation,
(b) on his retirement or resignation,
(c) on his death or disablement due to accident or disease.

It is provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

For the said period of one year, if the employee during the twelve calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than:

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case.

Yours is a borderline case, but you are not legally bound to pay as you have not fulfilled clause (ii) stated above - 240 days in the fifth year, as rightly mentioned by Mr. Nathrao.

Thanks and Regards