Hi Guys, Just want to know the gratuity eligible rule. Somewhere I read if someone works for 4 years 6+ months. He is eligible for gratuity as 6+ months treated as a whole year. Thanks in advance.
From India, Mohali
From India, Mohali
Hi Gaurav,
As per Section 4 (1) of the Payment of Gratuity Act, 1972 - Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Hope this clarifies your point!
JSM
From India, New Delhi
22As per Section 4 (1) of the Payment of Gratuity Act, 1972 - Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.
Hope this clarifies your point!
JSM
From India, New Delhi
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Less than 5 years service - Eligibility for payment of gratuity.pdf