Is It Fair to Deny Gratuity After 8 Years of Service? Seeking Advice on Eligibility

A colleague of mine worked in an organization for 8 years. After 3.5 years, he became a permanent employee, and after 4.5 years, he resigned. However, the administration is now reluctant to provide gratuity, stating that only 4.5 years have been completed. Is this acceptable? Please advise on how he can receive his gratuity.

Hi, if there is no long break in between, then the employer should consider 8 years of service for gratuity. I hope your colleague has documentary evidence for 8 years of service. If the employer is not considering the request of the employee even after the application for gratuity is submitted, please advise your colleague to appeal before the Assistant Commissioner of Labour with a copy of all employment-related documentary evidence.

Gratuity Payment for Continuous Service

Gratuity is due and payable for continuous service in a firm, irrespective of the nature of the service. It could be temporary, provisional, probationary, even daily rated, or casual. However, when there is continuity and no real break in service, the entire length of service is to be considered, and gratuity must be paid. The law on this point is very clear; there is no escape from paying gratuity for the reported 8 years of continuous service. If there is any default (not paid within 30 days of termination of service), gratuity has to be paid with interest.