Which gratuity rule applies if contract included five years?

I have a query regarding gratuity. I am currently working in a company in Bangalore, Karnataka. I will complete 5 years on January 1, 2024, but my last working day will be November 10, 2023. In the same company, I was on contract from November 5, 2018, to December 31, 2019. Then I became a regular employee from January 1, 2020. Will I be eligible for gratuity, considering I will complete 5 years, including the 2 months on contract? I heard about the 240-day ruling by the Honorable Madras and Kerala High Courts for the fifth year. Since I have already crossed 240+ days, does this ruling apply to me in Karnataka for gratuity eligibility? Can someone clarify if #1 and/or #2 will apply to my case for gratuity? I would like to know specifically for both cases independently (i.e., #1 and #2).

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Advocate By LEAD INDIA Answered: 09 May 2025

If your contract period was not continuous service with the same employer (with PF, salary slips, etc.), it usually would not count. You need 5 years of continuous service as an employee to claim gratuity. The 240-day rule from other states may not apply in Karnataka unless similar judgments are passed. You can file a gratuity claim and contest if denied. For further legal assistance contact us on our helpline number.


 

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