Gratuity Act - workman continues duty for 5 years and after 5 years one year of 190 days work

Mukesh Singh Dewda
Dear All Seniors, My question is the Gratuity Act related.
If any workman continues duty for 5 years and after 5 years one year of 190 days work, can you be eligible/break service?
Azfar Sadiq
He or she must have employed for nearly 190 days in a mine or coalfield-like institution (in which the work term is just 6 months) and 240 days in other fields
Madhu.T.K
Mukesh Singh Dewda, Your question is not clear. An employee who has worked for 5 years is entitled to get gratuity when he is leaving the organisation. Then what is "after 5 years one year 190 days......" and break in service?

This 190 days applies to employees working below the ground of mines and establishments working for 5 days in a week. But that also is relevant for daily wages employees because all other employees get salary for 30 days or 31 days in a month. Actually 240 days or 190 days concept applies only to daily rated workers and not for employees who get paid for the entire month even if they have holidays.
PRABHAT RANJAN MOHANTY
Mukesh Singh Dewda,
Mr Madhu is right your question is not clear.

An employee who has worked for 5 years is entitled to get gratuity, provided all the five years need to be continuous.
The question of service break is out of question. If the employee worked 190 days in 5th year and attained superannuation is eligible because it is considered as worked full year.
raghunath_bv
Hi, Mukesh,

The Gratuity Act in India states that an employee is eligible for gratuity if they have completed at least 5 years of continuous service with the same employer. However, the Act also specifies that if an employee has worked for a continuous period of 4 years and 190 days, it will be considered as 5 years for the purpose of gratuity calculation.

In your specific case, if a workman has continued duty for 5 years and then worked an additional 1 year and 190 days, they would be eligible for gratuity as they have completed the minimum requirement of 5 years of continuous service. The break in service would not affect their eligibility as long as they have completed the required period of service.

It's important to note that the specific details of the employment contract and any company policies regarding gratuity should also be taken into consideration. It's always best to consult with a legal or HR professional for specific advice in such matters.

Thanks,
Madhu.T.K
Sorry to correct Dr. B V Raghunath, there is no such provision under the Payment of Gratuity Act that gratuity is payable to an employee who has worked for 4 years and 190 days int he fifth year. The Act only says that an employee is entitled to gratuity only when he has 5 years continuous service. It is some court verdicts (not from the Supreme Court but High Court) that as the number of days required to constitute continuous service is 240 days in a period of 12 months for an establishment which work for six days in a week OR 190 days for workers engaged below the ground of a mine or for an establishment which work for five days in a week, that have interpreted that an employee who has worked for 240/190 days in the fifth year would be entitled to get gratuity.
sandip.kolte@hoerbiger.com
As per Section 4(1) of The Payment of Gratuity Act, Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
Accordingly the Payment of Gratuity Act supports completion of 5 years of service to get gratuity.
However, in certain High Court rulings like that of Madras High Court, Kerala High Court have been a different interpretation to the term continuous service and accordingly employees who have worked for 4 years and 240 days in the fifth year are made entitled to gratuity.
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