Will I be eligible for gratuity in 4 years and 7 months?

(RSM India founder Suresh Surana answered the question)

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 rendering continuous service for not less than 5 years in the following cases:

(a) on his retirement, or

(b) on his retirement or resignation, or

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

However, the condition of having completed 5 years of continuous service shall not be necessary where the termination of employment of an employee is due to death or disability. Herein, “complete year of service” means continuous service for 1 year and an employee shall be said to be in continuous service for a period, if he is in uninterrupted service, including service interrupted by illness, accident, Leave, absence from duty without leave, retrenchment, strike or lockout or termination of work is not due to any fault of the employee.

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

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

(Send questions to mintmoney@livemint.com)