Am I Eligible for Gratuity After Rejoining My Company with a Break in Service?

I need some help. I joined a company in July 2015 and continued till the end of March 2019, which amounts to 3 years and 8 months. Subsequently, I resigned and then rejoined the same company after a 3-month break, with the new joining date being July 2nd, 2019. I am currently working there, making it a total of more than 5 years with the same company. If I were to leave now, would I be eligible for gratuity? I still retain the same employee ID, and my payslips continue to display the original joining date of 2015.

Continuous Service and Gratuity Eligibility

From the fact that you have the same employee ID and the pay slips indicate the original date of joining, all point out that prima facie it is 'continuous service' as per the Payment of Gratuity Act 1972, and you are entitled to gratuity from 2015. However, it has to be examined as to how the gap of three months was adjusted in the record. What did your order of rejoining state? Is there any change in the date of increment on your rejoining?

Eligibility for Gratuity

Minimum qualifying service to be eligible for gratuity is not less than five years of continuous service by the claimant/employee in the same establishment.

Impact of Resignation on Gratuity

Resignation, per se, is a unilateral act of an employee resulting in the termination of his contract of employment with the concerned employer. When the resignation stands accepted and acted upon by both parties, notwithstanding the time gap, subsequent rejoining of the same person in the same establishment creates a fresh contract of employment. Strictly speaking, therefore, it cannot revive the service prior to the resignation.

The break is negligible because you completed more than 240 days of service in that year as well. Therefore, you are eligible for gratuity.

Regards, S. K. Mittal