Eligibility for Gratuity Under the Payment of Gratuity Act, 1972
As per Section 4 of the Payment of Gratuity Act, 1972, gratuity shall be payable to an employee on the termination of employment after he has rendered continuous service for not less than five years. Section 2A provides that an employee shall be said to be in continuous service if he has worked for 240 days over a period of 12 months. The same section also provides that if the establishment works for less than 6 days a week, a person will be in continuous service if he has worked for 190 days. These days are paid days, not necessarily physical days, but paid holidays, etc., will be counted as days worked.
High Court Verdicts on Gratuity Eligibility
There are a few High Court verdicts which state that an employee who has worked for 4 years and 240/190 days in the fifth year is entitled to get gratuity. Though the Supreme Court has not interfered, the dictum of these High Court verdicts shall be applied to your case as well. Then both of the aforementioned employees would be entitled to gratuity.