Can an Employee Claim Gratuity if Asked to Resign Before 3 Years of Service?

Hi,

Please let me know whether an employee can claim gratuity if the employer asks them to resign. The work period of the employee is less than 3 years.

Regards,
Shalini Mayank

Hi Shalini,

Yes, if the employer terminates any employee from their side, the employer has to pay the gratuity.

Regards,

Hi Tushar,

Can you please let me know about the law for the same or any clause? This is for my friend as she wants to claim it.

Regards, Shalini Mayank

Dear Employer,

An employer cannot legally ask an employee to tender resignation. You do not have to resign. You cannot claim gratuity for this period of service. If the employer terminates your service, whether justified or unjustified, and if you have not completed five years of service, then you are not entitled to any gratuity amount from the employer. You can only bargain or request this point with your employer. Opinion submitted as requested.

Regards,

R.N. Khola
(Labour Law & Legal Consultants)

Dear Mr. Khola,

I believe, based on my understanding, that if an employer terminates an employee for an acceptable reason, the employer is required to pay the employee gratuity for the duration worked, even if the employee has not completed five years of service. Due to the termination, the employee may be unable to fulfill the entire service period and may not wish to resign, but the company does not wish to continue the employment.

This is my opinion. Please let me know if I am mistaken.

Regards,

Dear Tushar Swar,

You cannot be stated to be correct. Please go through the P G Act, 1972 and try to find out the provision.

Regards,
R.N.Khola
(Labour Law & Legal Consultants)

I am also of the same opinion as provided by Mr. V. Harikrishnan.

Regards,
R.N. Khola
(Labour Law Consultants)