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Would like to know, whether an employee is eligible for getting both gratuity benefit and retrenchment benefit, if the company retrenches an employee after his/her continuous 5 years of services.
If so, kindly help me out by providing the exact section as per Gratuity Act and Industrial Dispute Act.
If not, he/she will be eligible only for gratuity.
Awaiting for your response.
Ritika Chaurasia

From India, Pune
Dear Ritika Chaurasia,
Gratuity has no connection with the retrenchment benefit. Gratuity payment is as per the Gratuity act for the service the employee already rendered. Retrenchment benefit is the compensation for the future service which get denied to the employee due to retrenchment.

From India, Bangalore
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