Synonym: End Of Service Benefits = Gratuity (Finance)
A legal obligation for a Business to provide their employees with the one-off payment upon the termination of employment, provided that this was longer than one year and that the relationship is not terminated upon the ground of Gross Misconduct.
It is recorded as a negative entry on the Balance Sheet.
See also
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Business / Business Administration / Financial Management / Financial Accounting / Non-Cash Expenses