Home / Money / Personal Finance /  Will I be eligible for gratuity in 4 years and 7 months?
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Q) Could you please let me know, would I be eligible for the gratuity in 4 years 7 months? I work 5 days a week. – Kshitija

(Query answered by Suresh Surana, Founder, RSM India)

Section 4(1) of The Payment of Gratuity Act, 1971 provides that gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years in the following cases:

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

However, the condition of completion of continuous service of 5 years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Herein, "completed year of service" would mean continuous service for 1 year and an employee shall be said to be in continuous service for a period if he has been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave, lay off, strike or a lock-out or cessation of work not due to any fault of the employee.

Further, it is to be noted that the Madras High Court in the case of Salem textile case (2011) had ruled that an employee would be eligible for gratuity even if he has completed 4 years 240 days.

You can also check with the HR team of your company on the eligibility to claim gratuity based on the provisions of the law discussed and also the judgement of the Madras High Court.

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