When is gratuity payable in India?

The Payment of Gratuity Act says gratuity is payable when employment ends after continuous service of at least five years, on superannuation, retirement, resignation, or death or disablement from accident or disease. The five-year test is not required when employment ends because of death or disablement. If the employee has died, the Act pays the gratuity to the nominee, or to the heirs when there is no nominee, and the Act sets the formula and a maximum.

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