Is He Eligible for Gratuity After Completing 5 Years of Service? Let's Discuss

Payment of Gratuity Act Requirements

You strictly follow the Payment of Gratuity Act, where the completion of five years is required to receive gratuity. However, following verdicts from the Madras High Court and Kerala High Court, which direct the payment of gratuity to an employee who has completed four years and 240 days in the fifth year, many establishments do pay it. In the absence of a similar direction or interpretation of the Act by the Supreme Court or an amendment to the Act, the entitlement to gratuity remains at the completion of five years, not a day less than five years.

Service Conditions and Gratuity Eligibility

I have also seen establishments including this in their service conditions. Obviously, when you have four years and 240 days in the fifth year as eligible service for gratuity in the employee manual/service conditions as per the appointment order, the same will be applicable to that organization.