Terminated Employee Gratuity - the Employee Continued on the Job 2.5 Years

bhagyesh-trivedi

THE EMPLOYEE CONTINUED ON THE JOB 2.5 YEARS BUT IF THE COMPANY TERMINATES HIM. THEN EMPLOYEE WILL BE GRATUITY WILL BE APPLICABLE OR NOT? PLEASE SHARE EMPLOYEE ACT

vmlakshminarayanan

Hi,

If the employee is terminated after 2.5 years of service then Gratuity will not be applicable.

Gratuity applicable only after 5 years of service.

Madhu.T.K

In such cases gratuity will not be applicable but the employee should be given compensation for termination at the rate of 15 days average wages for every completed year of service as per Industrial Disputes Act 1947.

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