Gratuity Rule: After how many years do employed people get gratuity, does the notice period also count?
After working for a long time in a company, companies give the benefit of gratuity. It is a kind of reward that is given to the employee in the name of honesty. The reward money given by the company is called gratuity.
The benefit of gratuity is available to those employees who have been working in the company for 5 years. Understand it like this if you joined a company in the year 2020 and changed the company after the completion of 5 years, then gratuity money is given by the company. On the other hand, if you change the company in 2-3 years, then you will not get the benefit of gratuity.
Many employees have questions regarding gratuity and whether the notice period is also counted in it. Come, we will give you the correct answer to this question below.
Does the notice period also count?
According to the Gratuity Rules, the notice period is also counted in the job period. The employee is giving his service to the company even during the notice period. This means that if an employee gives notice after working for 4 years and 10 months and serves a notice of 2 months, then it will be counted as 5 years and the gratuity amount will be given on that basis.
Gratuity is also available for less than 5 years
In many situations, the employee gets the benefit of gratuity even if the period is less than 5 years. As per the rules, if the employee has worked for 4 years and 8 months, then he is entitled to gratuity.
At the same time, according to the Gratuity Act 1972, if something untoward happens to the employee, in which he dies or becomes disabled, then in such a situation also he gets the benefit of gratuity. In these situations, the rule of working for 5 years does not apply. In such situations, the amount of gratuity is given to the nominee. While joining a job, the company makes the employee fill out Form F in which he gives the name of the nominee for the gratuity amount.
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