Gratuity Confusion: Does My Service Count from 2013 or 2015 After Company Change?

My organization started as a proprietorship in 2013. Later, the proprietor formed a company in 2015. I have been working since the beginning of the proprietorship and resigned in July 2022. Would my gratuity be applicable from 2013 or 2015?

For the purpose of calculating gratuity, the changed constitution of the organization will not be considered. Therefore, your eligibility will start from the date on which you joined the initial organization.

I agree with you, Mr. Madhu, but it also needs to be considered whether there were 10 or more employees in the firm during the proprietorship period.

For coverage of any Act, the qualifying number of employees during the last 12 months only needs to be considered. Therefore, even if the number of employees when the company was a proprietorship was less than 10, the establishment will be covered provided the number has become 10 during the last 12 months.