Vivek Kanabar 23 May 2022

Consideration of trainee period within overall service period of 5 years for gratuity consideration

I have joined the organisation on 09.02.2017 as trainer officer. During training period I was receiving stipend after deduction of professional tax. After completion of trainee period of one years, I was under for probation for six months, in which I was receiving salary after deduction of professional tax and provident fund. After six months of probation I got confirmation.

Now as I have completed overall period of 5 years, Whether period of one year would be considered for eligibility of 5 years of Gratuity.

Any case laws or judgement for supporting proof

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1 Replies

Anila Sabu 28 June 2022

Dear Querist,

An employee only qualifies for a gratuity under Section 4(1) of the Payment of Gratuity Act of 1972 after five years of continuous employment with the same employer.

According to a court-ordered ruling on gratuities, an employee is only eligible to receive one if they have worked for 4 years and 240 days.

In your situation, you have technically not completed this duration, as the training duration does not get taken into account for determining your gratuity.

CASE LAW: Chairman-Cum-Managing vs Regional Labour Commissioner on 26 May, 2005

CITATION: 2005 (2) ESC 1547

HELD: Since they were not employees of the Corporation their period of training cannot be counted towards service under The Payment of Gratuity Act.