As per the payment Act of gratuity act of 1972, An employee must be employed in the company for more than 5 years to be eligible for a gratuity amount. If any of the eligible employees resign from the job before the five years of service then he/she will not be eligible for the gratuity amount.
The limit of gratuity is extended to Rs.20 lakhs. Gratuity is given in the context of the appreciation and gratitude by the organization in return for the service rendered by the employee for five years and more than it.