The Jurisprudence Of Gratuity: Deconstructing The Minimum "Continuous Service" Requirement For Payment Of Gratuity
- IJLLR Journal
- Jul 4
- 1 min read
Chirag Mittal
ABSTRACT
The Payment of Gratuity Act, 1972 (referred to as ‘PGA’ hereinafter), serves as a cornerstone of social security legislation in India, providing a lump sum payment to employees as a token of appreciation for long and meritorious service. A central tenet of this Act is the requirement of "continuous service" for gratuity eligibility. However, even the most seasoned HR professionals disagree on the minimum length of service for which gratuity is payable under the Gratuity Act. Based on the plain reading of the Act, there is confusion regarding whether gratuity is payable after 5 years of service or 4 years, 240 days (or 190 days in some cases). Indian HR professionals have struggled with whether the statutory fiction in Section 2A—the 240-day rule—shortens the minimum requirement for paying gratuity or not. This article examines the diverse judicial perspectives to shed light on the debate.
