Gratuity Rules: Generally, the duration of employment for Gratuity is required to be 5 years. But suppose an employee worked for 4 years 10 months, after which he served a notice period of 2 months, will his notice period be counted in this? Know what the rule says here
Gratuity Rules: If you work well in a company for a long time, then that company considers you as its loyal employee. For your excellent services, reward money is given by the company, which is called gratuity. Generally, the duration of employment for Gratuity is required to be 5 years. But suppose an employee worked for 4 years 10 months, after which he served a notice period of 2 months, will his notice period be counted in this? Know what the rule says here
Gratuity will be given even if the job is less than 5 years
The rule regarding gratuity is of 5 years of employment, but if an employee has worked in the company for 4 years and 8 months, then he is considered entitled to gratuity. In such a situation, the period of 4 years 8 months is considered as 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 8 months, then his job period will be counted as 4 years only and in such a case he will not get gratuity.
Notice period is also counted
According to the rule, while counting the period 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 6 months, but after resignation you served a notice period of two months. In such a situation, your job period will be counted as 4 years 8 months only. And considering it as 5 years, the amount of gratuity will be given.
There is no rule of 5 years 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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