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Training Period Should be considered for Gratuity or not
31-Aug-2023 (In Labour & Service Law)
I have joined a private company in 1st July 2011 as Graduate Engineer Trainee after completing my B-Tech. After 1 year I got confirmation & designated as Executive Cadre. Now on last 03rd August 2016, I have resigned from the company.Now I was discussing with my HR regarding the Gratuity. They are telling I am not eligible for Gratuity as I have completed only 4 years.In fact i have completed 5years including training period. Pls clarify whether i am correct or my company is correct.
With regard to gratuity, there is a difference between an "apprentice" and "trainee". If you are an "apprentice" as per the definition under the Apprenticeship Act, then your training period is not included for calculating the entire service period. But if you are a "trainee", then you can file a claim for including the training period in the entire service period, subject to the provisions of your employment agreement/ appointment letter. In some cases, gratuity can be claimed even before completion of the 5-year period, and in some cases gratuity can be withheld even after completion of the 5-year period - this will depend on the complete facts and circumstances of your case. Since you are leaving the company after completion of 5 years of service, there is a chance for you to claim gratuity - subject to other facts.
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