IT IS commenly believed that Gratuity is payble only after completion of 5 years service period, but it happens that at the time of new appoitment in a company, Gratuity is mentioned in CTC BREAE UP AS PART OF SALARY, IN CTC STATEMENT PROVIDED TO NEW JOINEE, BUT SUPPOSE THE EMPLOYEE LEAVES THE COMPANY JUST AFTER ONE OR TWO YEARS, BUT PAYMENT OF GRATUITY IS NOT MADE TO HIM ON THE ASSUMPTION THAT IT IS PAYBLE ONLY IF EMPLOYEE SERVE THE COMPANY FOR 5 YEARS OR MORE. I FEEL THAT IF GRATUITY IS PART OF SALARY THAN IT IS PAYBLE EVEN EMPLOYEE LEAVE THE COMPANY AFTER ONE YEARS AND HE CAN CLAIM THE PAYMENT IF NOT MADE BY THE COMPANY. WHAT IS YOUR OPENION SIR ? KINDLY CLRIFY
From India, Jaipur
From India, Jaipur
Not payable to employee if he leaves before the 5 yrs service. In that case, the gratuity money which was part of his CTC, will be deposited to the Govt authorities by the employer.
From India, Lucknow
604From India, Lucknow
I retired on 31st April 2010 that is in the same financial year when the new gratuity amendment will come into force. How come the Government order specifies that the new gratuity ceiling enhancement for private sector employees will be applicable only for those who retire from May 24, 2010.
Can the Government not re-consider the date on which it will be effective as the first day of the current financial year???
What is the procedure by which this notification can be re-considered?
Kindly clarify.
From India, Madras
Can the Government not re-consider the date on which it will be effective as the first day of the current financial year???
What is the procedure by which this notification can be re-considered?
Kindly clarify.
From India, Madras
Dear All,
Greetings for the day!
Mr. Suresh: Actually as per the process and act says that Employees who are not giving the service within the same company for less then 5 years then he/she is not applicable for encashment.
Here one more point can be focused that if any company have taken or maintaining account with LIC Gratuity Account then he/she applicable for encashment of Gratuity amount even for a period of 1 month also. if not maintaining then need to go with Gratuity Act - 1972 as per Govt.
for more information attaching the file which gives the information about payment of Gratuity act of 1972.
From India, Hyderabad
Greetings for the day!
Mr. Suresh: Actually as per the process and act says that Employees who are not giving the service within the same company for less then 5 years then he/she is not applicable for encashment.
Here one more point can be focused that if any company have taken or maintaining account with LIC Gratuity Account then he/she applicable for encashment of Gratuity amount even for a period of 1 month also. if not maintaining then need to go with Gratuity Act - 1972 as per Govt.
for more information attaching the file which gives the information about payment of Gratuity act of 1972.
From India, Hyderabad
It is a common practice in many companies to include gratuity in CTC. Strictly speaking, unless employee completes continuous service of 5 years, he cannot claim gratuity. It is possible for employee to negotiate at the time of joining that either gratuity to be excluded from CTC or it should be paid even if employment ends before 5 years.
In our company, we have shown gratuity as part of CTC for senior managers and it is payable even if they leave before 5 years. For middle and junior positions, gratuity is not included in CTC. It is payable if they complete 5 years.
From India, Bangalore
In our company, we have shown gratuity as part of CTC for senior managers and it is payable even if they leave before 5 years. For middle and junior positions, gratuity is not included in CTC. It is payable if they complete 5 years.
From India, Bangalore
- There is no harm in case any employee pays Gratuity, even in case of less than 5 years service. But in reality very rarely it is paid.
- Employer should specifically mention in the CTC Sheet that, 'Gratuity will be payable only after completion of 5 years service' to avoid ambiguity and conflict between employer and employee.
From India, Pune
If Gratuity forms part of CTC, employee is entitled to it irrespective of his service rendered. If employer fails to pay, he can approach civil court for recovery or authority under Paymetn of Wages Act
If non-mention in CTC, employee is entitled only after 5 years of continous unblemished service.
From India, Tiruchchirappalli
If non-mention in CTC, employee is entitled only after 5 years of continous unblemished service.
From India, Tiruchchirappalli
what if management ask HR personnel to go for Force resignation of the employees? as a cost cutting measure.
Do we have to pay the gratuity to the employees who are asked to put their papers under force resignation, irrespective of the time period they have served the organization? as the employee is not willingly resigning from his respective post rather he been asked to put his papers from management.
From India
Do we have to pay the gratuity to the employees who are asked to put their papers under force resignation, irrespective of the time period they have served the organization? as the employee is not willingly resigning from his respective post rather he been asked to put his papers from management.
From India
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc