As the name implies, a company pays gratuity to its employees in recognition of their continuous service and hard work. The government attaches the same importance to gratuity as it does for EPF (Employees’ Provident Fund). The right to gratuity has been placed at the same level of primacy in law. The Gratuity Act applies to workers and employees of all establishments that employ 10 or more persons.

The Gratuity Act ensures employees retain the right to better gratuity terms under any agreement or contract. For establishments under the central government’s control or those operating across multiple states, the Centre acts as the regulatory authority.

According to the Gratuity Act, there is a formula for the calculation of gratuity. It is a simple and........

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