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Zehra Khalid
Social Development Organizations (NGOs) normally have jobs based on Project life and funds availability which normally lasts 3 to 5 years.
In case an employment is offered by the organization and Gratuity is included as part of CTC. Now after three years completion the Project phases out (gets closed) and the employees are notified about closure of the project and given discontinuation of service due to closure of the project.
Now how can be employee who's Gratuity been deducted for these 3 years be claimed from the Employer.

From India, Lucknow
umakanthan53
6018

Dear Zehra Khalid,

Firstly, I'd like to bring to your notice that gratuity under the Payment of Gratuity Act,1972 is a terminal benefit payable to an employee based on certain years of his continuous and blemishless service under the same employer. As on date it is five years for any kind of termination of employment other than death. Payment of gratuity is an exclusive liability of the employer in which no contribution from the employee is required. Whether the establishment is an NGO or otherwise, once the Act applies to it and the out-going employee has completed the minimum qualifying service, the NGO has to pay him the gratuity due notwithstanding its fund-position.

Secondly, the reflection of gratuity in the C.T.C of the employee, ipso facto, does not imply any periodical deduction from his salary nor it entitles him to gratuity upon the termination of his employment before the completion of the minimum qualifying service.

From India, Salem
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