Gratuity Eligibility for 3.5-Year Fixed-Term Job: Seeking Guidance on Legal Steps

Hello everyone, I had my last job in the banking sector, but I was on the payroll of an organization covered under the Shops and Establishments Act.

I was employed for 3.5 years on a contractual basis, during which I had 3 Annual Leaves in total.

Eligibility for Gratuity Payment

My question is whether I am eligible for the payment of gratuity for the said tenure under fixed-term employment. If so, please guide me with the legal procedure for the same.

My location is Ahmedabad, India.

Yes, you may be eligible for gratuity. According to the Payment of Gratuity Act, 1972 of India, if an employee has served for at least 5 continuous years in a company, they are eligible for gratuity. However, as per the latest amendment to the law in 2018, fixed-term employees are eligible for gratuity even if they have not completed 5 years.

Since you were employed on a fixed-term contract for 3.5 years, you may be eligible for gratuity. Here are the steps you can take:

1. Approach your employer or HR department: Start by discussing your situation with your employer or the HR department. They should be able to provide you with information on their policies regarding gratuity for fixed-term employees.

2. Document your employment tenure: Make sure you have all the necessary documents that prove your employment tenure (like salary slips, employment contract, etc.).

3. File a gratuity claim: If your employer confirms your eligibility, you can file a gratuity claim. To do this, you may have to fill out a form (Form I) and submit it to your employer.

4. Legal recourse: If your employer refuses your claim and you believe you are eligible, you can approach the controlling authority under the Payment of Gratuity Act in your region. In your case, this would be the Labour Commissioner of Gujarat.

Please note, it is essential to consult with a legal advisor or an expert in labor laws in India to understand your eligibility and the legal process better. Also, this information is subject to change as laws and regulations might change over time.