Dear Friends,

I am stuck on one point where I could not find any reference to resolve the issue. I need your help and suggestions.

If an employee works in a company for 4.3 years, then remains absconding for 2 years, and later puts in his resignation, is he still eligible for Gratuity Payment?

Awaiting your valuable advice.

Vkey

From India, Boisar
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nathrao
3180

No. Entitlement to gratuity does not arise if 5 years continuous service is not there.
From India, Pune
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U/s 4(1) of the Payment of Gratuity Act, 1971, the 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 only. The term “continues service” is defined u/s 2A of the said Act. Since this employee has worked only for 4.3 years he is not eligible for gratuity.
From India, Coimbatore
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nathrao
3180

One has to put in 5 years continuous service to become eligible for gratuity. This employee has not worked for 5 years and is not eligible for gratuity.
From India, Pune
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Dear Members, I also have a query that if above mentioned employee would have been worked for 4 year 6 month then, can we round off this period up to 5yrs? Regards, SACHIN
From India, Pune
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Thanks for your valuable guidance. I would appreciate if I could get any case study or documentary proof to support the same to present in front of my management. Vkey
From India, Boisar
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