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Gratuity Act

This query is : Resolved 
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(Querist)
31 October 2008 As per the gratuity act 1972 it is paid after completion of 5 yrs when an employee leaves an organization but is there any rule such that we cannot disburse gratuity if the employee leaves within 5 yrs.
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
31 October 2008 There is no bar.
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Prasanna Bhat

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Prasanna Bhat (Querist)
31 October 2008 Sir,

But usually the companies dont pay it what might be the reason
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
31 October 2008 They do not want to take on the liability as there is no statutory compulsion
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Prasanna Bhat

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Prasanna Bhat (Querist)
31 October 2008 Can we demand the gratuity our ex-employer for the period worked
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
31 October 2008 No if there is no contract to that effect.

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