Hi friends, I come to know recently when i was recruiting one candidate to our automobile industry, that... He received gratuity for his service in that company for only 3 years. This person has finished only 3 years service in that company instead of 5 years of service. Please clarify me: Is there any other companies which are paying gratuity even for 3 years of service. and also please let me know the new amendments if any about gratuity. Request you to respond ASAP. Thanks & Regards Vishnu 09867348720
From France, Versailles
From France, Versailles
Hi Vishnu, It may be possible that, He has terminated by the his previous employer. for this reason he received the gratuity before completion of 5 yrs. Regards,
From India, Mumbai
206From India, Mumbai
There are three possibilities. The company might have paid gratuity in sheer ignorance of Gratuity Act. Otherwise, the company might have paid it graciously taking in to consideration of the loyal service given to the company by the employee. Yet another possibility which I feel is that the company might have deducted gratuity amount from the salary of the employee on a monthly basis. It may happen that when offer is prepared, the company will show the figure including the gratuity ( the CTC!!!) as gross salary and later on deduct the same from the salary to arrive at the net salary. If an employer deducts an amount other than that mentioned in section 7 of the Payment of Wages Act, that amount will be treated as a fund refundable when the employee leaves the organisation due to any reason. It is very common now a days that employers include gratuity to the total package sothat the amount 'offered' will be very high. If an employee is not paid the amount offered as salary and if the amount deducted are not conforming to the permissible deductions such as, PF, ESI, fines, absence from duty etc, the employer should refund the amount so deducted from the salary. Thushar, even in case of termination, gratuity will not accrue if the length of service is less than 5 years. 5 years qualification is not required only when the payment is to be made to legal heirs of employee on the happening of the death of the employee. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc