5 key differences between severance pay and gratuity in India you need to know

Severance pay is mainly regulated by the Industrial Disputes Act, 1947, which sets guidelines for compensating workers who have been laid off or fired. It doesn’t apply to voluntary resignations or terminations resulting from employee misconduct. Gratuity, on the other hand, falls under the Payment of Gratuity Act, 1972, with well-defined regulatory mandates for eligibility, calculation, and disbursal.