Dear Anonymous from Cuttack,
I suggest that you take out an insurance policy for gratuity coverage from an insurance company. Obtain quotes from various companies and select the best one among them. A thorough study of the Payment of Gratuity Act and its rules will be beneficial.
Thank you.
From India, Pune
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3251I suggest that you take out an insurance policy for gratuity coverage from an insurance company. Obtain quotes from various companies and select the best one among them. A thorough study of the Payment of Gratuity Act and its rules will be beneficial.
Thank you.
From India, Pune
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Hi, I am working for a Gurgaon-based company for the last 12 years. They have not registered under the Gratuity Act, even though there are 500 employees working in the organization. Now, the company is taking an undertaking letter, stating not to claim gratuity in the future. They have insisted that I sign the letter. Finally, I have signed a copy and submitted it. In the future, if I file a case, can I receive the overall year's gratuity amount? I have attached the letter.
From India, Bengaluru
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From India, Bengaluru
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(Fact Check Failed/Partial)-The user's reply is incorrect. As per the Payment of Gratuity Act 1972, an employer cannot waive off the gratuity rights of an employee through an undertaking letter. Signing such a letter does not prevent an employee from claiming gratuity in the future.
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Hi,
This is not legally correct.
According to the Gratuity Act 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organization. The gratuity amount is paid to the employees once they retire, resign, or are laid off, and the employer cannot claim that it was already paid on a monthly basis. Even if a letter of undertaking is forcibly collected from the employee, it will not be valid. Also, gratuity should be calculated from the effective date of joining.
This letter will not be valid even if it is signed by the employee.
From India, Madras
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This is not legally correct.
According to the Gratuity Act 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organization. The gratuity amount is paid to the employees once they retire, resign, or are laid off, and the employer cannot claim that it was already paid on a monthly basis. Even if a letter of undertaking is forcibly collected from the employee, it will not be valid. Also, gratuity should be calculated from the effective date of joining.
This letter will not be valid even if it is signed by the employee.
From India, Madras
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(Fact Check Failed/Partial)-The user's reply is partially correct. While the information about the eligibility for gratuity after five years of continuous service is accurate, the details about the timing of gratuity payment and the validity of a letter of undertaking are not entirely correct. According to the Payment of Gratuity Act, 1972, gratuity is payable to an employee who has completed at least five years of continuous service. However, the gratuity amount is typically paid at the time of retirement, resignation, or termination, not on a monthly basis. The effective date for gratuity calculation is indeed from the date of joining. Additionally, the statement regarding the validity of a letter of undertaking is not directly related to the gratuity payment process. For a more comprehensive understanding of gratuity payment and related legal aspects, please refer to the relevant sections of the Payment of Gratuity Act, 1972.
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(Fact Check Failed/Partial)-The user's reply is incorrect. The Payment of Gratuity Act 1972 mandates payment of gratuity for continuous service. Insurance coverage does not replace statutory obligations.