Hi All,
As per the payment of gratuity act, employee has to work for 5 years to be eligible for Gratuity. Please read the section 4 of the payment of gratuity act. The deeming provisions under section 2 (a) will only come when a person has worked for 5 years in the organization. The case laws given in particular case can not be considered as law. The cases decided by the High Court and Supereme Court are basis on the termination of employment by the emloyer not in case of voluntary resignation by the employee. In case if employee is been terminated by the employer on completion of 4 year and 240 days then the employer is liable to pay gratuity as the employee did not intend to terminate his employment it is the employer who terminates the employment of an employee due to any reason (not for misconduct, where the gratuity can even forfieted) in such scenario employer is liable to pay the gratuity as there is no fault of the employee which stops him to work 5 years or more to be eligible for gratuity.
The continuous service as defined in section 2 (a) has to be read in conjuction with section 4 of the act. If we precisely understand the interpretation it will look like that a person has to work for 5 years to be eligible for gratuity. however, it is not mandatory for him to work entire year if he has worked 240 days in any year he is eligible for gratuity. It is not restricted to 5th year only.
Hope the experts agree with my interpretation
Ravi Gupta
