Gratuity / settlement above 5 years

shahanamp
By shahanamp

What is the latest labor law on gratuity payment for employees who have completed 5 years or more with the company?

Is there a difference in calculation?

By SIDHIQUE CT• 18 Jan 2017 12:55
SIDHIQUE CT

the employer shall pay the end of service gratuity to the worker who has completed employment of one year or more. This gratuity shall be agreed upon by the two parties, provided that it is not less

than a three-week wage for every year of employment. The worker shall be entitled to gratuity for the fractions of the year in proportion to the duration of employment. The worker's service shall be considered continuous if it is terminated in cases other than those stipulated in article (61) of this Law and is returned to service within two months of its termination. The last basic wage shall be the base for the calculation of the gratuity. The employer is entitled to deduct from the service gratuity the amount due to him by the worker.

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