Employers typically cannot forfeit gratuity after an employee completes 5 years of service, as it is a statutory benefit governed by the Payment of Gratuity Act. However, in exceptional cases of employee misconduct or fraud, forfeiture may occur, but it requires due process and valid reasons. Employees have the right to challenge such decisions legally if they believe them to be unjust.
Can an employer forfeit gratuity even after an employee has completed 5 years of service?
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