Gratuity claim - employee joins a company on a contract basis and is regularised after three years

Dear colleague,

I want to know one thing: If an employee joins a company on a contract basis and is regularized after three years of continuous service and has completed 5 years, 6 months, and 3 days of continuous service, is he/she eligible for gratuity? If eligible, please brief me about the calculation of the amount.

Regards,
Mithlesh Singh

It is not clear whether the 5-year+ service is cumulative or the service rendered anew after contract service. In either case, the employee is eligible. However, for determining the continuous service period, this needs to be clarified. If there is a complete break in service for all intents and purposes, then continuity is disrupted. Your post indicates that being regularized in service after three years of contract service suggests continuity. Please verify this aspect before calculating gratuity.

Hi,

After the end of the contract period, whether the employee is regularized on regular rolls immediately or is there any break between two. If the employee was regularized, then Gratuity to be processed based on the last drawn Basic+DA x 15/26 * number of years completed.

Criterion for eligibility for gratuity payment is five years of "continuous" service. If an employee meets this criterion, he/she is eligible to receive gratuity payment.