As I understand, he is entitled to gratuity as he has completed more than 5 1/2 yrs service
You have to pay Gratuity if the employee had completed 5 years of Service. In this case you definetely have to.
PAYMENT OF GRATUITY.- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, - (a) on his superannuation, or
(b) on his retirement or resignation,
gratuity is applicable when he complete his 5 year services
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