If Employee Is Terminated What Gratuity He Is Eligible For ? - CiteHR
Industrial Relations And Labour Laws
Labour Laws & Ir
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Labour & Industrial Laws
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Presently In Assam
Anu Product Ltd
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I want to know if a employee completes his 5 years of service and he is asked to leave the organisation does he is eligible for gratuity and how much?
And if he resigns what gratuity he is eligible for ?
Please inform me.
Rajesh Dave
Naturell India Private Limited

Under both situations he is entitled to get gratuity. However, if his services are terminated for gross negligence (means he is dismissed) then gratuity shall not be paid.
The amount of Gratuity is equal to 15 days salary for every completed year of service.

Dear Dave,
There is no legal provision asking an employee to leave. Either employee leaves or he is sacked.
Gratuity can be forfieted only in case of discontinuation of employment as a punishment for theft, fraud, dishonesty, any behaviour amounting to moral turptitude (assault/ rape/ attempt of molestation etc).
Gratuity calculation is (Last drawn Basic+DA)/26 X 15 X No of completed years of service
Here, we need to consider service above 6 months in the last year as next complete year.
However this adjustment is subject to completion of 5 years of service.
Generalist 91

Employee dismissed from service will be eligible for Gratuity provide that he had completedly 5yrs of continous service and the cause of dismissal is not excluded by Gratuity Act.
I wish to know the gratuity law is implied to the teachers as well. But over the years no graduity fund is collected. Moreover, the school can not charge etra in the name of gratuity from the students.
In this case what is the procedure of paying gratuity?
Shanti Prakash

Kindly help
I have a quiry
The school that has not collected any money for gratuity and the new law of grauity applies to the school teachers as well.
How should I go about it?
Thank you
Fr. Shanti Prakash

Shanti kindly understand that Gratuity fund is not collected/deducted from the employees salary. In otherwords, its Gratitous amount give to employees for his/her continous unblemished service to the organization. It is purely the employers contributions for the employees Gratitous service. So it can be enacted/ordered to given by the competent authority.
Dear MR Dave

The employee who completes 5 years service is not only cretiria for the payment of gratuity. He should also requires to work for more than 240 days in every year and should have continuous service for 5 years. In such a case, the employee is entitle for gratuity.

When the employee commits misconduct resulting financial loss to the organisation, then only the company has rigtht to forfiet the gratuity payable to him which is equelent to the loss so caused to the organisation. Generally, in other cases, where the employee dismissed or discharged for the proved acts of misconduct like absenteeism, sleeping whilest duty and gross neglegence etc, the employer cannot forfiet the gratuity payable to such employee.

Wether the employee resigns or he was asked to resign doesnot make any difference for the payment of gratuity. If he fulfils the conditions as stated above, the gratuity is payable at the rate of 15 days average pay for each completed year of service. In the formula for payment of gratuity is = Salary last drawn %26 days X 15X number of years of service.




I was terminated from service of the Company without assigning any proper reasons. I have 18 years of service and 13 years service left for retirement. In such a situation can I claim gratuity for 31 years?
Dear Sir, Once the gratuity is applicable, it is the lookout of the employer as to how the finance is to be raised.

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