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

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.