If Employee Is Terminated What Gratuity He Is Eligible For ? - CiteHR
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In My view Payment of Gratuity act is very clear on eligibility criteria.
4. 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,
or
(c) on his death or disablement due to accident or disease:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:
Where as Removal and Dismissal are already forfeiture the gratuity.
Regarding Section 4 (6) (a) it is completely speaking about the above terminations from service.
Kindly comment

All termination of services will not attract section 4(6) of the Act. Clause (a) requires that termination should be for willful omission or negligence causing damage or loss to company or destruction caused to the company and clause (b) of section 4(6) states that termination should be due to riotous or act of violence OR for a misconduct involving moral turpitude committed by the employee DURING THE COURSE OF EMPLOYMENT. The words " during the course of employment" is very important and you can not forfeit the gratuity if you dismiss an employee for an offense involving moral turpitude committed by him when he was out of your office. That means all termination will not attract section 4(6) but forfeiture is permitted only in such termination as specifically mentioned in clauses (a) and (b)

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