As per the Gratuity Payment Act, Temporary staff, contract workers, etc., are also eligible for the gratuity amount subject to fulfillment of all other conditions. such as they need to complete a minimum of five years in service.

The payment of gratuity Act considers Temporary staff and contract workers as employees of an organization. but it does not recognize the ‘apprentice’ as an employee hence, the apprentice is not eligible for gratuity.

As per the Payment of Gratuity Act, Payment of gratuity is allowed only in the following situations:

1.When an employee has completed at least five years in continuous service with that employee and

-Resign from the service

– On superannuation (means an employee who attains the age of retirement is               said to be in superannuation)

– At the time of retirement

2. On death or disablement due to accident or disease (the time limit of 5 years shall not apply in the case of death or disablement of the employee)

Note: in the following condition if an employee works less than five continuous years then also he will be eligible to get the gratuity.

(i). If the person has worked for 190 days continuously since the end of the 4th year of his employment. This is applicable in the case of those who are working in underground mines or working with such organizations which work for less than 6 days a week.

(ii) In the case of employees working with other organizations, this period is 240 days.