Is My Friend Eligible for Gratuity After 4 Years and 240 Days Without It in CTC?

My friend got a better offer, completed 4 years and 240 days. Will he be eligible for Gratuity? There is NO gratuity part in CTC in his company. Still, can he ask for gratuity? Please advise.

Hi, I have a query regarding gratuity eligibility.

Before resigning from my previous organization, I wrote them an email asking for the gratuity qualification period. They replied back to me stating it was 4.6 years.

Upon confirmation from them that my period of stay in the organization would be 4 years, 6 months, and 10 days, I resigned from the same. Now, after 5 months, I still have not received my money from that organization. When I wrote them another email, they informed me that the benchmark for gratuity has been revised to 4.8 years during that period.

I have all the communication on email from the HR team. Can I sue my previous organization for misleading and misinformation? If I am eligible for gratuity, whom should I approach? Is it advisable for me to lodge a legal complaint against my former employer?

I am waiting for a reply. Thanks

Eligibility for Gratuity

The eligibility for gratuity is typically after the completion of 5 years. However, in some organizations, gratuity is payable after 4.6 or 4.8 years. If 4 years are completed and in the 5th year, the employee completes 240 working days, then he is eligible for gratuity. So, Mr. Parkorbit, your friend should ask as he/she is eligible for it.

Thanks

Hi,

Apart from the useful information already provided in the posts above, I would also like to contribute a detailed treatment of the sections in the Act from which we can infer that 240 days of service should be considered as one year of continuous service.

As per the Gratuity Act, the definition of the term "continuous service" in Section 2 Definitions is as follows:

Section 2 Definitions.
(b) "completed year of service" means continuous service for one year;
(c) "continuous service" means continuous service as defined in section 2A;

Section 2A itself is defined as follows:

Section 2A Continuous service.

For the purposes of this Act:
(1) An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave...
(2) Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than:
(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) two hundred and forty days, in any other case;

According to this definition, 240 days of service should be considered as one year of continuous service.

I have discussed this issue in detail on my blog at gratuitypayment.wordpress.com.

Thanks,
SK

Gratuity is payable only after completion of five years [not less] as per Section 4 of the act as below:

4. PAYMENT OF GRATUITY.- (1) 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, - (a) on his superannuation, or.....

Thus, it is a precondition so the question of 4.6 or 4.8 or 4.9 years is void.

Hi Mr. Rohit, can you please provide me with a supportive document for claiming gratuity in 4 years & 9 months of service? It would be very helpful for me. Thanks, Vishwesh.