Gratuity Eligibility: Can 4 Years and 11 Months of Service Secure Your Claim?

Eligibility for Gratuity with 4 Years 11 Months of Service

Is 4 years, 11 months, and 11 days of continuous service in a limited company applicable to claim gratuity? I have served 21 days short of completing 6 years, including 11 months of probation. However, the company is still denying providing my gratuity.

As per statutory requirements regarding eligibility for gratuity payment, if an employee completes 4 years of continuous service and in the 5th year, completes 240 working days (including weekly offs, paid leave, National/Festival holidays of the company), they are entitled to receive payment of gratuity.

Thank you.

I disagree with both the learned friends who responded that you are eligible for gratuity for working 4 years, 11 months, and 11 days. As per the Gratuity Act, gratuity is payable to an employee upon the termination of their employment after they have rendered continuous service for not less than five years. If you are from Chennai or Kerala, then you are eligible for gratuity in light of the Madras High Court judgment in Mettur Beardsell Ltd vs Regional Labour Commissioner (1998 LLR 1072) and the Kerala High Court in Sreeja Vs Regional Joint Labour Commissioner (2015 LLR 826).

You further mentioned that you served 21 days short of 6 years, including 11 months of probation. Then where is the question? You are eligible then. Or did you make a mistake in writing 21 days short of 6 years?

The continuous service of 4 years and 240 days for the 5th year norm has been upheld by the Apex court in a couple of judgments in determining 'continuous service'; therefore, it will be in order to grant gratuity in this respect. Based on the Supreme Court's judgment, this norm applies commonly all over India.

With due respect, I would like you to elaborate on a couple of judgments in determining 'continuous service' so that there will be clarity in understanding for members like me and there won't be any ambiguity.

Dear colleagues,

There have been lengthy discussions on this issue a few years ago in this forum. Many still argue that a person becomes eligible only when he/she completes 5 years of 'continuous service'. In saying so, most keep in mind 5 x 12 calendar months, quoting verbatim words mentioned in the act. However, they conveniently forget/ignore that a year of service also means a minimum of 240 days of 'employment' in the preceding year. For the purpose of gratuity, service over 6 months can be treated as a full year. Action has not been initiated even after the interpretation made in the apex court's judgments more than once to amend the act to remove the ambiguity and bring in uniformity all over.

Please go through the following link on the subject: https://www.citehr.com/440537-gratui...ml#post1993632

Also, the Supreme Court judgment is attached.

Dear colleagues, I only shared what is available through the web, law journals, reports, articles, and other sources. I'm not a legal practitioner/expert either, as I'm still in service, but a keen reader of legal/HR/Finance matters, truly an academician in real terms. I believe there is a lot more, oceans of knowledge and information to be known and read; there cannot be limits. In this sense, it's not right to interpret the judgments passed by the courts, but we can only analyze for the sake of sharing knowledge. We can disseminate whatever we think is right. The chronology you pointed out is correct, but we can't say why and why not. Things do happen, but the legal system is such that unless there are pleas, courts will not be able to analyze all the cases dealt with in all the courts en masse, as you know. Interpretation of laws does differ from court to court, even judge to judge. For people willing to take advantage of available information/aids, it's proactive. The unwilling persons take advantage of the fact that the Act still remains unamended. I would appeal to all concerned to take a positive view on the matter and pave the way to grant gratuity rightfully due.

You will find more information and insight into the subject in these links:

- [SC Judgement Gratuity PDF Download](https://www.citehr.com/108564-sc-judgement-gratuity-pdf-download.html)
- [Indian Kanoon](https://indiankanoon.org/doc/1541846/)
- [Tax Management India](https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=115324)
- [Labour Service Legal Advice - Gratuity Issue](https://lawrato.com/labour-service-legal-advice/served-4-years-240-days-company-is-not-giving-gratuity-7377)
- [Lawyers Club India Forum Discussion on Gratuity Eligibility](https://www.lawyersclubindia.com/forum/gratuity-eligibility-4-yrs-8-months-110913.asp)
- [LinkedIn Article on Gratuity Eligibility](https://www.linkedin.com/pulse/gratuity-eligibility-4-yrs-8-months-qamer-siddiqui)

I have received the gratuity after completing 4 years and 270 days, but it required patience and continuous pleading with the concerned HR.

Dear Eshu1510,

Great!!! You got the gratuity. Congratulations!!!

Merely anybody got it, it doesn't mean it is a law. There is no objection in paying anything more than the law.

Here we are here to discuss the law, the fact of law with supporting evidence, and not to discuss what is said by someone at some place giving various links. If the matter is concluded, then there should not be any ambiguity and different opinions.

I tell my employers that the gratuity is payable upon the termination of employment after rendering continuous service for not less than five years. I also inform them that if anybody does not agree to it, please advise him to challenge it in a Court of Law.

Of course, I am not referring to the jurisdiction of Chennai and Kerala High Court.

I also inform the employers that they can decide to consider the payment of gratuity in such cases voluntarily if they wish to.

With this, I have now decided to refrain from writing anything further on Gratuity for 4 years and 240 days.

I have had a very short journey of 55 days on this forum. During the lockdown, I came here to learn something and unlearn too by reading and sharing what I know.

Gratuity Eligibility Based on Court Judgment

In one case in the Madras High Court way back in the 1990s, a judgment was given that if a person works continuously for 4 years and 240 days, they are eligible for gratuity. Hence, they are eligible for gratuity.

Yes, you are eligible for payment of gratuity. The continuous service of 4 years and 240 days for the 5th year is the statutory requirement regarding eligibility for gratuity payment.

Thanks & Regards,

Sumit Kumar Saxena