Gratuity Eligibility: Does Your Notice Period Count Towards the 5-Year Requirement?

Hi,

This is in reference to the gratuity amount that is eligible for an employee who has completed five years of continuous service. I am going to complete five years this April, while I am also looking for a change in job. My concern is whether the notice period should be included in the period of five years of service. We have a three-month notice period in our organization.

Dear Sender,

Yes, the notice period for which the employee has worked will be considered as part of his service when computing his gratuity payment.

Regards,
L. Kumar

When the employee resigned after completing 4 years of service and part of the fifth year, in the fifth year, it will be calculated based on the number of days worked. If he/she has completed 240 days, he/she is eligible to receive gratuity.