Employer goes bankrupt; employees will get gratuity?

Ask the Community Statutory Compliance
1

Hi,

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

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2

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

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3

Hi @MadhuPR

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

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4

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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