Gratuity Eligibility: Does Resigning After 4 Years Affect Your Benefits?

Dear HR Experts,

Please advise if an employee who has worked in a company for 4 years and 3 months, and is subsequently asked by the management to resign, would be eligible for gratuity upon resignation.

Regards,
Madan MM

Hi, Gratuity will be applicable only if the employee completes 5 years of continuous service. Hence, in this case, the employee is not eligible for gratuity.

Hi Lakshmi N.

In the following exceptional cases as per labor laws, an employee is entitled to receive gratuity benefits:

1. Disability with 100%
2. Shutting down the company
3. Termination of employment
4. Asked to resign by the employer
5. Death

However, I have some doubts about "Asked to resign by the employer," and I would like clarification on this matter.

I kindly request all professionals to please help clear my doubts.

Regards,
Madan MM