Project Closure and Employee Rights: Can You Get Retrenchment and Gratuity After 4.5 Years?

Is the employee eligible for retrenchment along with gratuity on account of the closure of the project office due to the completion of the contract if he worked for more than 4.5 years of service?

It depends on the nature of the appointment. If the appointment order specifies that the employment is for a fixed period of 4 years or 4 years and 6 months or until the completion of the project, then the question of retrenchment compensation will not arise. At the same time, if the employee had worked for 5 years, regardless of the nature of employment, he would have been entitled to gratuity. Though there are a few court verdicts that have interpreted working for 240 days in the fifth year as one year of service, this cannot be applied in your case because a six-month period is not sufficient to reach 240 days in the fifth year.