Hi Team #compensation-and-benefits Currently due to some unavoidable circumstances and situation, our organization has to take a tuff decision of downsizing the team. There are around 12 members we have asked to start another job, where we have given them time for 3 months to search a job. (although the notice period is of 2 months) Here I want to understand one point about Gratuity: If employee has spent 2 years with us (less then 5 years), and employee is not leaving company by their choice, it is because of company's decision, he has to leave. So is he eligible to get the Gratuity amount back ?

No

@Kruti Shah Gratuity is payable only in case the employee completes the 5 Year Period. In case if the Company is based in TN - then it will be 4.8 Yrs.

No, he is not eligible for Gratuity. However, if a company wants to pay that amount to the employee, they can do so by showing under a different heading (bonus etc)

NO. The organization has the freedom to modify this as per their benefits scheme, however. But the organization's Gratuity Policy must comply with the requirements posed by law. i.e., they can choose to give gratuity for less than 5 years but not increase this term

Some companies choose to give the gratuity amount as a goodwill gesture but it is not a legal requirement.