Generally, the duration of employment for gratuity must be 5 years. But suppose an employee worked for 4 years and 10 months, and then served a notice period of 2 months, will his notice period be counted in this? Know here what the rule says
If you work well for a long time in a company, then that company considers you its loyal employee. For your excellent services, the company gives you reward money, which is called gratuity. Generally, the duration of employment for gratuity must be 5 years. But suppose an employee worked for 4 years and 10 months, after which he served a notice period of 2 months, will his notice period be counted in this? Know here what the rule says
Gratuity will be given even if the job is less than 5 years
The rule regarding gratuity is 5 years of service, but if an employee has worked for 4 years and 8 months in the company, then also he is considered entitled to gratuity. In such a situation, the period of 4 years and 8 months is considered as a full 5 years and he is given the amount of gratuity as per 5 years. But if he has worked for less than 4 years and 8 months, then his service period will be counted as 4 years only and in such a case he will not get gratuity.
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Notice period also counts
According to the rule, while counting the duration of employment, the notice period of the employee is also counted because during that period also the employee is giving his services to the company. In such a situation, suppose you resigned after working in a company for four and a half years i.e. 4 years and 6 months, but served a notice period of two months after resignation. In such a case, your duration of employment will be counted as 4 years and 8 months only. And considering it as 5 years, the amount of gratuity will be given.
There is no 5 year rule in these situations
According to the Gratuity Act 1972, if an employee dies in an accident or becomes disabled and is unable to work again, then the rule of working for 5 years for payment of gratuity does not apply to him. In such a case, the gratuity amount is paid to the nominee or dependent. You can register the name of the nominee for your gratuity amount by filling Form F while joining the job.
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