Gratuity Payment After Retrenchment: Are Companies Obligated to Pay?

Gratuity Payment Obligation After Employee Retrenchment

Please help me to clarify my concept. Our company is a mining company in Odisha, and due to the stoppage of mining operations, the company has retrenched the employees. I want to know if a company retrenches its employees, is the company liable to pay all the gratuity amounts to the respective employees?

Regards,
Anjana

You have to pay gratuity provided the employee completed five years of continuous service prior to retrenchment in terms of Sec. 4 of the Payment of Gratuity Act.

Regards,
B. Saikumar
Mumbai

Prosecution Under the Payment of Gratuity Act

Can a Controlling Authority under the Payment of Gratuity Act file prosecution against the erring employer for non-payment of the Gratuity?

You raised the query late. This should have been raised before acting on retrenchment. Better follow Mr. Sai Kumar's advice now.