Gratuity Eligibility Confusion: Does Rejoining Affect Start Date for Benefits?

Dear Sir/Madam, I have some doubts regarding gratuity. One of my employees joined the company in 2000 and continued until 2005. They resigned and rejoined in 2008 and are still with us. The company did not provide an appointment letter in 2000, nor a resignation letter when they left in 2005, and also did not issue a new appointment letter in 2008. However, their roles for previous and current work have been defined, and they receive payments online. PF deductions were made from 2004 to 2005, then resumed in 2010 and continue to date.

I am seeking clarity on whether the employee will be eligible for gratuity from 2000 onwards or from 2008. Your guidance on this matter would be greatly appreciated.

Thank you.

Hello there,

Gratuity means continuity in service; this is not related to EPF or any government body. It is purely from the management to the employee for their service.

In your case, if the employee has the same employee ID or registration details before and after rejoining, gratuity can be calculated from the start of their job. If not, gratuity will be calculated from 2008 onwards.

Any malpractice, including behavioral issues, will result in gratuity not being paid to the employee without valid reasons and documents.

Gratuity Eligibility and HR System Improvements

Very poor HR system and employee management. But now that the employee has resigned, the question of gratuity has come up. First of all, determine the period for which the employee has been working continuously, and then the gratuity amounts can be calculated. Please check all employment records, PF records, etc., and issue an appointment order from that date onwards. The appointment letter should not be backdated.

Establishing Proper HR Policies

The company needs to establish proper HR policies for appointment and exit procedures. This will benefit both the company and the employees and ensure compliance with labor laws.