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LatestCorporate Compliance 3 August 2026

Supreme Court Clarifies Gratuity Rules

The Supreme Court has ruled that an employer can forfeit gratuity only to the extent of proven financial loss, bringing clarity to the rules on gratuity forfeiture in India. This decision is expected to have significant implications for employees and employers alike, as it provides a clear understanding of the circumstances under which gratuity can be forfeited.

The Supreme Court has clarified the rules on gratuity forfeiture, stating that an employer can forfeit *gratuity* only to the extent of proven financial loss.
- The decision is expected to have significant implications for employees and employers alike.
- The ruling brings clarity to the rules on gratuity forfeiture in India, providing a clear understanding of the circumstances under which *gratuity* can be forfeited.

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