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If an employer terminates the employment of an employee who has worked for more than 5 years in the company, is the employer liable to pay gratuity to that employee? Please suggest.

Thanks & regards,
Varsha Nagpur.

From India, Nagpur
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Hi Varsha, 1.Gratuity is payable if an employee has put continuous* service of 5 years. *continuous service according sec 2A of the Gratuity act 1972
From India, New Delhi
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Gratuity should be paid irrespective of whether the employee left the job on his own or removed by the company.
From India, Bhopal
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The company should pay gratuity to an employee who has resigned or whom the company is terminating if the employee has completed 4 years and 240 days in the 5th year. According to the amendment in the Gratuity Act, gratuity is applicable after 4 years and 240 days.

Thanks & Regards,
Dashrathsinh Jhala

From India, Ahmadabad
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Companies should pay gratuity to employees who have resigned or have been terminated by the company if the employee has completed 4 years and 240 days in the 5th year. According to the amendment in the Gratuity Act, gratuity is applicable after 4 years and 240 days of service. A judgment given by the Madras High Court in a similar case where the employee had completed 4 years and 240 days resulted in the employer paying gratuity.

Thanks & Regards,
Anil Sharma
[Phone Number Removed For Privacy Reasons]

From India, Delhi
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In the given case, if the termination was not as a result of any disciplinary action, the employee cannot be denied gratuity as per section 4(6) of the Payment of Gratuity Act.
From India, Chennai
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