Retrenchment Pdf

Dear Mr. Prashant,As per Section 4 of the Payment of Gratuity Act, 1972, gratuity shall not be payable to an employee on termination of employment after he has rendered continuous service of not less than 5 years. It is also provided that completion of continuou...

Hi, there is only one thumb rule in gratuity that is "paid only after completion of 5 years of service." No matter what is the reason for leaving the organization, it may be termination, self-resignation, or retrenchment.

Dear Seniors,In case of retrenchment, if the employee is retrenched before completing 5 years of continuous service, then is the employee eligible for gratuity? If yes, for how long is he eligible for gratuity?Thanks in anticipation.Best Regards,Prashant86050049...

Dear Seniors,I agree, there is a thumb rule as mentioned by Nipuna and agreed upon by others. However, another question arises: nowadays, many companies consider gratuity as part of CTC. When an employee resigns before completing 5 years, the company does not pa...

Dear Prashanth,Will you please read Sec 2(oo) of the ID Act conjunctively with its Sec 25F? As I understand, retrenchment is the act of an employer terminating the services of an employee for any reason other than as a punishment by way of disciplinary action su...

Dear Sampath,Gratuity is a terminal benefit payable by the employer. So, there is no harm nor is it wrong to be included in the CTC. For the sake of financial and administrative convenience, periodical payments to gratuity schemes instituted by insurance compani...

Dear Mr. Prashant,Though I appreciate your efforts in raising the initial query, which I termed as brainstorming, I must point out that I have an objection to your statement in your email. You mentioned that you are trying to understand or judge the depth of kno...

Dear All Seniors,Thanks for your kind inputs & remarksLet me please clear I am not of opinion of evading any Gratuity Liability but to understand with in depth knowledge of community members if we peruse the below definition of " Continuous Service " any interru...

Dear Mr. Prashant,Evasion is unethical. Discussing something unethical in an open forum like this may not be correct. I have personally handled a few retrenchment situations involving less than five years. Invariably, I have recommended payment of gratuity even ...