If company is closed because of loss, in this situation also company is liable to pay gratuity?

asmipdesai14@rediffmail.com
If company is closed because of loss, in this situation also company is liable to pay gratuity of those employees who complete 5 yrs.
Thanks
Aks17
The tying up with insurance company is intended to cover this area specifically. A trust is formed wherein the company is supposed to keep the amount separate for the purpose of Gratuity payment and it is applicable irrespective of whether the company is incurring loss or making profits.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute