Hi,

Could you please tell me which types of establishments are covered under the Payment of Gratuity Act 1972? Can anyone claim gratuity after a service of 5 years or more if they have been terminated due to disciplinary action?

From India, Pune
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Hi,

The Payment of Gratuity Act is applicable to any factory, shop, or establishment, educational institution employing more than 10 employees. An employee who has completed 5 years of continuous service, though terminated after conducting a departmental inquiry, is entitled to gratuity unless terminated for an offense involving moral turpitude, etc. That means the misconduct for which he is terminated plays a role.

S.M. Paranjape, Advocate

From India, Pune
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