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Gratuity Eligibility Gratuity Eligibility

1 year ago

Gratuity is eligible if completed one or it must be more than 5 years ?

I have worked in an organisation for past 5.7 years but for one year as Trainee,then as a contractor for 1.4 years and 3.2 months as a employee. I need to know whether I'm eligible for Gratuity or not as the rules.

Anik

Responded 1 year ago

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A.As per the Payment of Gratuity Act, an employee is eligible to receive gratuity if he/she has completed a minimum of 5 years of continuous service with the employer. However, in case of death or disablement of the employee, the gratuity is payable even if the employee has not completed 5 years of service.

In your case, you have completed 3.2 months as an employee, and you have also worked for 1.4 years as a contractor, which may be considered for calculating continuous service under certain conditions. However, the one year you worked as a trainee is not considered as a part of the continuous service period.

To calculate the eligibility for gratuity, you need to add the total duration of service, including the period of contract work, and if it exceeds 5 years, you will be eligible for gratuity. In your case, you have worked for 3.2 months as an employee, and you have also worked for 1.4 years as a contractor, so the total duration of your service is 1.4 years and 3.2 months, which is less than the minimum required 5 years of service.

Therefore, based on the information provided, you may not be eligible for gratuity. However, it is advisable to check with your employer's HR department and the terms and conditions of your employment contract for further clarification.
Thank you
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Advocate Simi Paul

Responded 1 year ago

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A.Hi client,

No your training period won't be included in the gratuity period.

Thanks and Regards
Simi Paul
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