Gratuity Rules: If you have completed 11 months of service and served a 30-day notice period, will that count as one year of service? Learn the rules.

Gratuity Rules: Changing jobs is common these days, and many people find a new position before completing a year. Previously, the problem was that a minimum of five years of service was required to receive gratuity. However, the government has now made a significant change. Four new labor laws have been implemented in the country. Under these provisions, the gratuity limit has been reduced from five years to one year.

This means that even if someone has served just one year, they can still be eligible for gratuity. Now, the question arises: what happens if an employee resigns after working for 11 months and serves a 30-day notice period? So, will that be considered one year, and will he be eligible for gratuity? Let us explain the details.

Will 11 months and 30 days' notice be considered one year?

Now, following the enactment of four new labor laws in the country, gratuity rules have changed. Gratuity is now paid after one year. However, if someone worked for 11 months and served a notice period of 30 days, will that be considered a full year of service? Let us tell you that job tenure is only counted from the joining to the last working day. The notice period is only included if it is recorded as service time by the company. If you worked for 11 months and the subsequent 30-day notice period was also counted as working tenure by the company, then the total period could be 12 months, or one year. In this case, you are eligible for gratuity claim under the new rules. But if the company doesn't include the notice period in the work period and considers it merely a formality, your tenure won't be considered 12 months. Therefore, it's crucial to check the date the company recorded your last working day.

What benefits will employees receive after the new rule?

The government's new change brings relief to employees who work for short periods or frequently change jobs. Previously, the five-year requirement prevented millions of employees from receiving gratuity, even though they had made a genuine contribution to the company's growth. Now, gratuity can be earned even after just one year of service.

This will directly benefit entry-level workers. If you have completed one year or your service period is considered one year in the company's records, you can claim gratuity. This requires submitting an application to HR, and if necessary, a complaint can also be filed with the labor department.