Gratuity

Your neighbour in Vashi retires after thirty-one years at the same company. On his last day HR hands him a cheque called gratuity. A junior colleague who resigns after four years and ten months may get nothing. Why the difference, who calculates the amount, and what can the retired man do if the company sits on it? Chapter V of the Code on Social Security, 2020 (ss.53-58) carries the rules.

In two minutes

Gratuity is a lump sum payable by the employer when employment ends after five years of continuous service (with listed exceptions), worked out at fifteen days' wages for each completed year or part above six months, and enforced through a competent authority.

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