Understanding Gratuity Eligibility and Retrenchment Compensation for Employees - CiteHR

A worker who has completed 3 years continuous services, has been issued notice of retrenchment. I would like to know whether he is eligible to get gratuity at the time of retrenchment?
From India, Madras
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I think a minimum service of 5 years, is necessary to be eligible for gratuity. Subba Rao Bhagavatula
From India, Hyderabad
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Dear Mr.Saleth He is not entitled to get gratutity as he had not put in five years of continuous service
From India, Madras
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Hi, In my opinion and also, as per the law, Gratuity is eligible only for an employee those who have completed 5 years exactly in his service period is considered as a Gratuity.
From India, Calcutta
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Gratuity and Retrenchment Compensation

Gratuity is payable only if the employee has completed a minimum of 5 years of continuous service with the same organization. For this purpose, the employer is required to have Form F filled out after the employee completes 1 year in the organization. The amount payable is 15 days of average pay for every year the employee has worked.

Now, addressing your question, if a worker who has completed 3 years of continuous service receives a notice of retrenchment, then he is entitled to retrenchment compensation. According to Section 25F of the Industrial Disputes Act, 1947 (Conditions precedent to retrenchment of workmen), the worker must be compensated, at the time of retrenchment, with an amount equivalent to 15 days of average pay for every completed year of continuous service, or any part thereof exceeding 6 months.

From India, Mumbai
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Dear If an employee is retrench after completion of six years, whether he will get retrenchment compensation and gratuity amount both.
From India, Delhi
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If an employee is retrenched after completing six years, he will receive both retrenchment compensation and gratuity, provided he is eligible under the Industrial Disputes Act and the Payment of Gratuity Act, respectively.

With regards,

From India, Madras
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