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Settling ₹25.6 Crore in Gratuity Within 19 Days of a Mass Layoff

Executing ₹25.6 Crore in Gratuity Settlements Within 19 Days

Gourab Majumder

13/04/2026

Overview

A sudden mass layoff. 1,230 employees impacted and an immediate statutory obligation with financial consequences. In December 2018, a Fortune 500 company undertook a large-scale workforce separation, resulting in 1,230 employees exiting the organisation, of which 811 were eligible for gratuity.

Given the sensitivity and urgency of the situation, the organisation required immediate execution of the gratuity settlement process with LIC. Any delay would directly impact employee trust during a sensitive workforce transition and trigger statutory interest liability at 10% per annum under the Payment of Gratuity Act.

The requirement was clear: execute a high-volume, time-critical compliance process accurately and without delay.

 

C-Quel’s Solution

C-Quel deployed a high-intensity, time-bound execution model, operating on a war-footing to complete the entire gratuity settlement process.

 

  • Immediate Mobilisation and Structured Timeline Execution

C-Quel commenced work immediately, aligning internal resources and defining strict timelines for completion.
This ensured uninterrupted execution despite the scale, sensitivity, and compressed time window.

 

  • Strategic Intervention with LIC for Accelerated Processing

Discussions were held with senior LIC officials to expedite processing timelines.
C-Quel successfully secured a critical exception allowing processing based on soft copies of claim forms, with hard copies to follow.

 

  • High-Volume Processing with Risk-Control Framework

Gratuity claims for all 811 eligible employees were generated, reviewed, and validated under C-Quel’s Maker–Checker–Approver control framework.
This ensured zero-error validation while processing high volumes within compressed timelines.

 

  • Structured Processing and Submission at Scale

All validated claims were systematically processed and submitted to LIC in a structured manner.
This eliminated documentation inconsistencies and ensured seamless execution across all cases.

 

Conclusion

Gratuity amounting to ₹25,59,63,885 for 811 employees was successfully settled within 19 days from the employees’ last working date.

The outcome:

  • Time-bound settlement of all eligible gratuity claims
  • Avoidance of statutory interest liability at 10% per annum resulting in significant financial savings
  • Smooth execution during a sensitive workforce transition

This engagement demonstrated how high-stakes compliance can be executed with speed, precision, and zero compromise on accuracy.

Deliver time-critical compliance without risk. Partner with C-Quel.

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