Dear Meera Sharif,
Pls be noted the concept of rounding off is application only after completing 05 years continuous service. That is not applicable for 1-5 years. In r/o 1-5 years you must complete 240 (190 in some other cases) days in every year, than only this year will be treated as completed continuous one year. Same way after completing five year's service you will be eligible for Gratuity. However, in r/o 6th year and onwards the 06 months round off concept is applicable.
Dear Nivruti - Priyanka,
As per the Act 240 days formula for 05th Year is still not approved through notification. However, there are certain court verdict which accepted the period for Gratuity pymt.
Overall it is organisation's decision to pay or not to pay gratuity before completing 05 years continuous service. But if you have completed 04 year and 240 days service than you can claim the same through court case. In that case if court allowed than the employer have to pay the Gratuity. You can refer previous court verdict in your support.
But it is fact, this concept is not yet regularized through gazette notification, hence we can't say it is applicable as per the Act.
Hope I am cleared to your points. The matter was well discussed many times in the forum, you can find experts comments.
Seniors can through more light on the matter.