Current Gratuity rule for 4 yrs 6 months eligibility

635 votes

An employee is eligible for payment of gratuity if [ section 2 ]:-

He/she rendered the continuous service for five or more than five years on the termination of his employment :-
On his superannuation; or
On his resignation or retirement; or
On his disablement due to disease/accident or death. (continuous service of five years is not applicable in this case)
Here meaning of an employee [ section 2(e) ]:-
Any person (not apprentice)
Employed on salary or wages
Employed in any factory, establishment, mine, plantation, oilfield, port, shop or Railway Company.
To do any work (i.e., manual supervisory, non technical, technical, unskilled, semiskilled, skilled, managerial, officer or clerical)
Whether the terms of employment are implied or expressed.
Whether or not he is employed in an administrative or managerial capacity.
Here meaning of Superannuation [ section 2(r) ]:-
The attainment by the worker/employee of such age
As defined in service conditions and contract.
As the age on attainment of which the worker/employee shall vacate the service/employment.
Here meaning of continuous service [ section 2A ]:-
uninterrupted service which may be interrupted due to accident, sickness, absence for duty without any leave, leave, lay-off, lock-out, strike or cessation of work (due to not any fault of the employee) are considered as continuous service.
Whether such interrupted or uninterrupted service was rendered after or before the commencement of the Act.
If in case employee is not in continuous service of one year, he/she shall be deemed to be in continuous service of one year if; he/she has, immediately preceding twelve colander months, worked under the employer for not less than –
190 Days (in case of employee employed in mines below ground)
190 Days (in case if employee employed in an establishment which works for less than six days in a week)
240 Days ( in any other case)
If in case employee is not in continuous service of six months, he/she shall be deemed to be in continuous service of six months if; he/she has, immediately preceding six colander months, worked under the employer for not less than –
95 Days (in case of employee employed in mines below ground)
95 Days (in case if employee employed in an establishment which works for less than six days in a week)
120 Days ( in any other case)
If an employee of seasonal establishment is not in continuous service of twelve or six months, he/she shall be deemed to be in continuous service of twelve or six months; if he/she actually worked for not less than seventy five percent of the number of days on which the establishment was in operation during such period.
Note: Following days shall be included while calculating the actual worked days of an employee:-
Employee has been laid-off under an agreement.
Employee has been on leave with full wages.
Employee has been absent to his duty due to temporary disablement caused by an accident arising out of and in the course of his employment.
Maternity leave for female employee, not more than twelve weeks.
Gratuity shall be paid to :-
The Employee
Employee’s Nominee (if deceased employee had made a nomination)
Employee’s Legal heir (if deceased employee had not made any nomination)
If case of minor legal heir or nominee, the amount of gratuity shall be deposited with controlling authority. Controlling authority deposit/invest the gratuity amount in a financial institution or bank for benefit of minor, as may be prescribed, until such minor attains majority.

Advocate Siddhant Sharma LawRato

889 votes

In order to become eligible for gratuity, you must complete a total of 5 years of service which is not the case with you unless you are disabled.
Thus, you will have to work and wait another 5 months before you can claim gratuity. All documents to show that you have completed 5 years of service would be necessary to claim.

Advocate Rohan Mittal LawRato