Hr Manager
+1 Other

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Dear friends,
Our's is a private limited company doing BPO services( Medical Transcription). Recently we had terminated one employee due to non performance and he was in managerial position.
We had settled all his dues except gratuity. Now he had come with gratuity claim. He wants us to settle it at the earliest. His total service with us is 8.3 yrs.
Please guide me on this issue.Do we need to pay even if we had terminated him from service? Also, plz tell how to calculate the same.

From United States
If the employee has rendered 5 years of continuous service then he is eligible to gratuity but the gratuity payable to an employee may be wholly or partially forfeited -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
and if he has been terminated due to non performance and loss caused due to it then you should pay the gratuity excluding/ deducting the loss incurred due to

From India, Hyderabad
Dear Friends ,
Can any one help me by providing the information whether we have to pay the Gratuity amount to the employee who has been terminated from the services in due course of reducing over heads of the company . if so whether this minimum 5year service of the meployee in the company is applicable for them or not . Gratuity is one of the component which comprises our CTC .
Pls,. help.
Thanks and Regards

From India, Madras
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