The employee continued on the job for 2.5 years. If the company terminates him, will gratuity be applicable to the employee or not? Please share information on the employee act.
Hi, If the employee is terminated after 2.5 years of service, then gratuity will not be applicable. Gratuity is applicable only after 5 years of service.
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 the Industrial Disputes Act of 1947.
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