New Delhi | 14 Jun, 2020 (1 month, 3 weeks ago)

Employment and Labour Laws

Gratuity Payout Rules

An employee with an IT firm has worked continuously for 4 years & 209 days. The IT firm works 5 days a week. Is the employee eligible for Gratuity payout?
Answers
19 Jun, 2020 | 05:22

Any requirement to pay gratuity under Section 4 of the Payment of Gratuity Act, 1971 kicks in only after an employee has rendered continuous service for not less than 5 years. So this employee doesn't seem to fit the criterion.
It is also relevant to check in which State is the employee working because a lot of States have suspended the operation of the Payment of Gratuity Act due to COVID-19.


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