Gratuity Dilemma: Can You Claim It if Terminated Before 5 Years Due to Company Shutdown?

Can you please tell me if we can get the Gratuity amount to be paid in the following case?

Gratuity as Part of CTC

Gratuity is a part of CTC, deducted every month, and kept on the Employer's side. The employee has completed only 1 year, and the Employer terminates due to a merger/shutdown/closing of the company. In this case, the Employee did not resign, but the Employer terminated almost 70% of the employees due to the shutdown.

Please suggest. I know that it is not paid until the employee completes 5 years, but what about in the case explained above?

Regards,
Mamta

The Payment of Gratuity Act has no provision for the case mentioned by you. In other words, no payment is payable towards gratuity for a person who has worked for less than 5 years.

Regards,
Preetam Deshpande