Gratuity Eligibility: Does Working 4 Years and 10 Months Qualify for Benefits?

One of the PSU employees has worked for 4 years, 10 months, and 20 days, i.e., less than 5 years but more than 240 days in the said year. Is he eligible for gratuity under the Payment of Gratuity Central Rules under the concept of continuous service? If not, what are the reasons thereof.

The continuous service of 4 years and 10 months suffices to fulfill the eligibility criteria of five years of service.

After 5 years of continuous service, if 10 months are completed in the 5th year, you will be entitled to receive gratuity.

Dear Ashis,

As per your post and act, the employee is not eligible as he has not completed 5 years of service. Since gratuity is a statutory benefit paid to the employees, it can be considered under the welfare measure by the interpretation given by some courts. Since it is a PSU, please be cautious before doing so and take necessary approval from the authority.