Employer goes bankrupt; employees will get gratuity?

Hi,

What happens to the employees gratuity amount if company goes bankrupt and shuts down?

2 Likes

Only the way to approach labour department to get the conclusion.

3 Likes

Hi @MadhuP1

Yes, no matter what would be the situation of the company, Gratuity needs to be paid.

To know more: Is gratuity mandatory in India? Even if not mentioned in Offer Letter - #8 by Umakanthan

4 Likes

Hi,

Yes, Gratuity needs to be paid to the eligible employees without it Employer will not get clean chit from to government to close down the business due to any reasons.

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