Retirement Gratuity: Is an Employee Eligible After Just Over 3 Years of Service?

Employee has completed the service for 3 years and 4 months due to retirement. Is he eligible for gratuity?

No, gratuity is not connected with retirement, but it is payable only if the employee has worked for five years.

Dear colleague,

Earlier, the practice was that if any employee worked for years, they were eligible for gratuity. However, after the introduction of the new labor code, gratuity is payable to the employee for every completed year (240 days).

Please follow the new labor code and state the rules of your state.

MP

@Manohar, where is it in the new labor code? I did not find it. The labor codes are just a copy-paste of the old Gratuity Act in relation to aspects of gratuity. Even the interpretations of High Courts of Kerala or Madras on 4 years and 240 days are not addressed in the new Code.