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What happens to gratuity if a person leaves the job before 5 years?
short by Dharini Mudgal / on Wednesday, 6 May, 2026
Gratuity is lump-sum benefit paid at job exit, usually after five years' service. However, four years plus 240 working days in fifth year can be treated as full year under court rulings. Fixed-term employees may qualify after one year on pro-rata basis. It's also payable in cases of death. The amount is 15 days' wages for each year of service.
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