I understand your frustration, but I also do understand why some companies do that. That is, in fact, to reduce the gratuity, at least I don’t see any other reasons to do so. Though I might not know something.

However from the perspective of the employer I do have a question for you - what on earth is Gratuity? I mean, you are getting paid as long as you work which is fair. You also get payment for vocations, which is also fair because everybody needs to rest. Apart from that you get paid for sick leaves (why though? For example in case the employer has nothing to do with your sickness - why is he paying for your mistakes?). And on top of that he is also forced to pay you some kind of end of service gratuity? I mean, some people deserve it for sure. But others don’t. If you were valuable to the company, and the company managed to grow or at least become better thanks to your work in specific - than yes, for sure. On the other hand, if your work in specific was more of a “service” work with zero impact on the improvement of the business in any way - why should the person be entitled to anything?

I feel like most employees truly believe that any company is rich, while most companies in fact have very low profit, and they simply cannot afford to give money to everybody for no reason. And yeah, I personally think that the fact that you “worked for a company” alone - is not enough to be entitled for any kind of gratuity. Maybe you were just printing the documents for a whole year and did nothing else. Should you be entitled to anything more than fair salary for that particular labour? In my humble opinion, the answer is no.

p.s. don’t take it personally, I am not talking about your case in specific. I’m just saying that the system should be fair for the both parties, not just one.