Am I Eligible for Gratuity After 4 Years and 7 Months with My Current Employer?

Dear All,

My name is Rahul, and I'm from Indore (M.P.). I have completed 4 years and 7 months with my current organization. Now, I'm looking for a job change.

If I leave my current employer, are they liable to pay me gratuity or not?

Please help.

For this span of service, you will not be entitled to have gratuity from this current employer under the Payment of Gratuity Act, 1972.

R N KHOLA

Hi,

Now that you have completed 4.7 years, please be patient for another 5 months to become eligible for Gratuity. After that, you may consider looking for a change.

Dear Member,

You are eligible for gratuity depending on the number of working days in your company. If your company operates six days a week, then you should complete four years and eight months to be eligible for gratuity. On the other hand, if your company operates five days a week, you only need to complete four years and six months to qualify for gratuity. I hope this clarification is helpful.

Thank you,
P. Karunakaran

It is ideal that you should try to complete 5 years. Yes, there are decisions of Kerala and Madras High Courts to the effect that completion of 240 days of service in the fifth year makes the employee eligible. However, the decisions are binding only in those States.

Of course, these decisions are of persuasive value, and other High Courts as well as the Supreme Court may follow and uphold the ratio if the matter could be escalated to that level.