Facing Employer Bankruptcy: Will I Still Get My Gratuity and Why?

sanjaysinghutm77
If my current employer is going into bankruptcy, what happens to my gratuity? Can I receive my gratuity amount, or not? Please explain the reasons and rules.
nathrao
Payment of Gratuity Act, 1972

Section: 4A

Compulsory insurance

The relevant portion of the Act reads as follows:

Compulsory Insurance

The Payment of Gratuity (Amendment) Act, 1987, prescribes provisions for compulsory insurance for an employer's liability for payment towards gratuity under the Act from the Life Insurance Corporation of India, established under the Life Insurance Corporation of India Act, 1956, or any other prescribed insurer. However, employers of establishments belonging to or under the control of the Central Government or the State Government are exempted from the operations of these provisions. (Section 4A)[xxiii]

So, cross-check whether the company has taken insurance from LIC of India or not.
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