Understanding Gratuity Eligibility in India
In India, gratuity is a statutory benefit provided to employees as a form of gratitude for their service upon retirement, resignation, or termination. To be eligible for gratuity, an employee must meet certain criteria, including completing a minimum period of continuous service. The Payment of Gratuity Act, 1972 governs the payment of gratuity to employees in India.
Clarification on Eligibility Criteria
In your case, the confusion arises from the calculation of the minimum service period required to be eligible for gratuity. According to the Act, an employee is eligible for gratuity if they have completed a minimum of 5 years of continuous service. However, the Act defines a year of service as completing 240 days of work in a year.
Calculation of Service Period
To determine your eligibility for gratuity, you need to calculate the total number of days you have worked from your date of joining to the date of leaving. In your situation, joining on 24/05/2017 and leaving on 03/02/2022, you have completed approximately 4 years and 9 months.
Resolution and Next Steps
1. Request a detailed explanation from the HR department regarding their calculation of the service period required for gratuity eligibility.
2. Provide them with the calculation of your service period based on the actual number of days worked.
3. If there is a discrepancy, refer to the Payment of Gratuity Act, 1972, and seek clarification on how the Act defines the service period for gratuity eligibility.
4. If necessary, you may escalate the matter to higher authorities within the organization or seek legal advice to ensure you receive the gratuity you are entitled to based on your actual service period.
By following these steps and seeking clarification based on the legal provisions, you can address the discrepancy in gratuity eligibility and ensure you receive your rightful benefits as per the law.