Mahaboob Shareef 03 April 2021

Gratuity eligible

My service with Private Limited Company is 4 Yrs and 7 Months 6Days (Approx)- DOJ 10-june-2016 and Date of Relieving is 16-Jan-2021. whether i am eligible for Gratuity or not if yes then let me know the rules if not please let me know why Ur valuable comments will be appreciated..

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3 Replies

Sanjay Narayandas (Advocate) 03 April 2021

Hey,

The primary law in India with regards to Gratuity is Payment of Gratuity Act, 1972. In that, Section 4 clearly says that gratuity is payable when you are in continuous service for not less than 5 years. Since, the time you have worked is lesser than 5 years, it can't apply here.

Ritesh Maity (Labour Law Advocate) 04 April 2021

In my opinion if you have worked for at least 240 days in the 5th year, then you are entitled to gratuity.

Sanjay Narayandas (Advocate) 04 April 2021

Other than that under Section 4(2) of Payment of Gratuity Act, 1972 you can get gratuity for every 6 months calculated at the rate of 15 days and not the 5 year rule.