Payment mandate under gratuity act 1972

Manish Aneja (Executive) (57 Points)

08 August 2011  

Dear All,

Please guide me on the mandate of payment under "Payment of Gratuity Act, 1972" if:-

  1. Employee has completed four years of working with the private limited company.
  2. After four years company is terminating employee due to cost cutting/recession, however employee is willing to provide his/her services to company.

As per above conditions, company is forcing employee to leave the job. So in this case, is there any liability arise on company for payment of gratuity under Payment of Gratuity Act, 1972?

If yes, then please provide the relevent section of law.

Regards,

Manish