# Employer goes bankrupt; employees will get gratuity?
**URL:** https://community.greythr.com/t/employer-goes-bankrupt-employees-will-get-gratuity/2467
**Category:** Statutory Compliance
**Tags:** gratuity-
**Created:** [April 27, 2021, 8:41am UTC](https://community.greythr.com/t/employer-goes-bankrupt-employees-will-get-gratuity/2467 "2021-04-27T08:41:09Z")
**Posts on this page:** 4
**Page:** 1
### Author:  [@MadhuPR](https://community.greythr.com/u/MadhuPR)
#### Post date: [April 27, 2021, 8:41am UTC](https://community.greythr.com/t/employer-goes-bankrupt-employees-will-get-gratuity/2467/1 "2021-04-27T08:41:09Z")
Hi,
What happens to the employees gratuity amount if company goes bankrupt and shuts down?
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### Author:  [@suresh.p](https://community.greythr.com/u/suresh.p)
#### Post date: [April 27, 2021, 10:23am UTC](https://community.greythr.com/t/employer-goes-bankrupt-employees-will-get-gratuity/2467/2 "2021-04-27T10:23:18Z")
Only the way to approach labour department to get the conclusion.
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### Author:  [@Dinesh](https://community.greythr.com/u/Dinesh)
#### Post date: [April 28, 2021, 3:53am UTC](https://community.greythr.com/t/employer-goes-bankrupt-employees-will-get-gratuity/2467/3 "2021-04-28T03:53:18Z")
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](https://community.greythr.com/t/is-gratuity-mandatory-in-india-even-if-not-mentioned-in-offer-letter/1908/8)
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### Author:  [@Arpana](https://community.greythr.com/u/Arpana)
#### Post date: [April 28, 2021, 4:52am UTC](https://community.greythr.com/t/employer-goes-bankrupt-employees-will-get-gratuity/2467/4 "2021-04-28T04:52:03Z")
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.