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What is the criteria for being considered for gratuity


18-May-2023 (In Labour & Service Law)
I joined a limited company initially for a period of 2 year contract in 2012. The appointment letter mentioned that 2 years will be a period of training and after 2 years i shall be evaluated for confirmation. After 2 years in 2014, i became a confirmed permanent employee and served for 3 years(1 year out of this 3 year was on probation). I resigned in 2018 on completing a service of 5 years and 3 months. The company denied me payment of gratuity citing that 2 years contract period as trainee will not be considered for purpose of gratuity calculation. Kindly advice.
Answers (2)

Answer #1
811 votes
The Payment of Gratuity Act, 1972 was enacted as there was no Central Act to regulate payment of gratuity to industrial workers, except the Working Journalists (Conditions of Service) Miscellaneous Provisions Act, 1965. The Act provides for payment of gratuity to employees employed in the establishment in the event of superannuation, retirement resignation and in certain other events, who were in employment continuously for at least for a period of five years and were drawing wages on fulfilling their terms and conditions of service, express or implied.
The word 'employee' has been defined in Section 2(e) of the Payment of Gratuity Act as under :-"2(e) 'employee' means any person (other than an apprentice employed on wages, not exceeding one thousand rupees per mensem, in any establishment, factory, mine, oilfield, plantation, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, but does not include any such person who is employed in a managerial or administrative capacity, or who holds a civil post under the Central Government or a State Government or who is subject to the Air force Act, 1950 (45 of 1950), theArmy Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957).
Payment of Gratuity Act, 1972 specifically excludes the apprentices appointed under the Apprentices Act, it does not exclude trainees. The, trainees will be covered under the P.G. Act and the period of training of the trainees will be counted towards the service rendered for the purpose of calculation of gratuity. Under Section 4(1) of the Payment of Gratuity Act, 1972 the period of training of the officers is also counted for the purpose of calculation of gratuity.

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. So file a case before Controlling Authority / Assistant Labour Commissioner for getting the same.
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Answer #2
513 votes
You can escalate the issue may taking up the issue with the authorities concerned .. .....
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