Gratuity Dilemma: Should We Pay an Employee Who Served 4 Years and 9 Months?

Gratuity Payment Obligation

Kindly confirm if we are bound to pay gratuity to an employee who was in service with us for around 4 years and 9 months. As Section 4 of the Act states, the person must work for not less than 5 years. If an employee is not requesting the same, should we still pay, even if the management is not inclined to do so? Please suggest.

Regards

Gratuity Payment Obligations

The establishment is required to act on its own and make the payment; failing which, the liability will increase by 10% simple interest for the period of delay. If the management is not interested in paying, then it can take the risk and face the consequences. As per the Act, it is not necessary for the employee to make a claim before gratuity is paid.