HR glossary · Pay and payroll
End-of-service gratuity
A payment due to an employee when employment ends, based on length of service.
End-of-service gratuity is a payment an employee may be entitled to when employment ends. It is usually calculated from the length of service and the last salary. The formula depends on the country's labor law, the contract and the reason the employment ended.
In practice
Because the rules differ by country and case, HRPrimes configures the calculation your company follows in Odoo Payroll and validates it with your HR and Finance team before go-live.
Related terms
See how these work together in one system.