ARTICLE · 04 APRIL 2025

Gratuity Forfeiture Without Criminal Conviction: Key Ruling Under The Gratuity Act

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Statutory gratuity is a mandatory financial benefit granted to eligible employees following the cessation of their employment, thereby serving as a recognition...

IndiaEmployment and HR

Harinie Seenivasan

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Introduction

Statutory gratuity is a mandatory financial benefit granted to eligible employees following the cessation of their employment, thereby serving as a recognition for their long-term service and valuable contributions. The Payment of Gratuity Act, 1972 ("Gratuity Act") plays a crucial role in safeguarding employees' financial well-being when they retire, resign, or leave after years of service. The Gratuity Act outlines the procedures for calculating and paying gratuity, offering employees a financial safety net. In doing so, it not only rewards the dedication of employees but also highlights the commitment of organisations to value and honour the contributions of their employees.

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