The Open HRMS Gratuity Settlement module handles employee settlements during the resignation process. Usually, the gratuity is paid at the time of retirement, but it can be paid before retirement based on certain conditions. An employee is eligible to receive gratuity only if he has completed a minimum of five years of service in the company. The gratuity can be paid before the completion of five years in certain cases, like the death of an employee or becoming disabled due to an accident or disease.
The Manager can create gratuity settlements of employees during their resignation. The settlement amount is calculated based on a predefined equation. A gratuity settlement can be created only when the resignation request of the employee is approved. The settlement reason should be mentioned to create settlements other than gratuity.