Hello,

I would like to know if an employee is eligible to receive both gratuity benefits and retrenchment benefits if the company retrenches an employee after their continuous 5 years of service. If so, could you please assist me by providing the exact sections as per the Gratuity Act and the Industrial Dispute Act? If not, the employee will only be eligible for gratuity.

I look forward to your response.

Regards,
Ritika Chaurasia

From India, Pune

Dear Ritika Chaurasia,

Gratuity has no connection with the retrenchment benefit. Gratuity payment is as per the Gratuity Act for the service the employee already rendered. Retrenchment benefit is the compensation for the future service which gets denied to the employee due to retrenchment.

Abbas P.S.

From India, Bangalore

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