HR Glossary
What is Payment of Gratuity Act?
India's central legislation enacted in 1972 that requires employers to pay a lump-sum gratuity amount to employees who have completed 5 or more years of continuous service, upon resignation, retirement, death, or disablement.
Why it matters in hiring
Payment of Gratuity Act comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.
Related terms starting with P
- Pay Transparency Directive
- PAYE - Pay As You Earn
- PAYG - Pay As You Go (Australia)
- Payment of Bonus Act
- Payment of Wages Act
- Payroll
- Payroll Compliance
- Payroll Cycle
Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.
