Is an Employer Still Liable for Gratuity After a Full and Final Settlement?

An employee has resigned after working for more than 7 years. The employee signed the full and final settlement letter stating that he has no dues pending from the company. However, the full and final settlement letter does not mention anything about gratuity. Now, after 3 months, the employee has submitted a letter claiming for gratuity.

Employer's Liability for Gratuity

Is the employer liable to pay gratuity to the employee?

An employer is liable to pay gratuity to the employee even after full and final payment. The Gratuity Act/Rules state how gratuity should be payable to the employee. You can go through the Payment of Gratuity (Central) Rules, 1972, or your state rules related to the Gratuity Act (if formed), which clearly mention how an employee should claim gratuity through the prescribed format, and how an employer should pay gratuity. Mere signing that he/she received all payment does not affect his/her right to claim gratuity.

Regards.