Dear pkmbgr13,
My submission to above is as under:
1. In order to earn gratuity, employee has to render not less than 5 years of service.
2. In case of death or disablement, gratuity is payable even service is less than 5 years.
3. I am aware of Judgement of Madras HC and I have given my views on it in this forum earlier.
From India, Mumbai
2556My submission to above is as under:
1. In order to earn gratuity, employee has to render not less than 5 years of service.
2. In case of death or disablement, gratuity is payable even service is less than 5 years.
3. I am aware of Judgement of Madras HC and I have given my views on it in this forum earlier.
From India, Mumbai
I fully agree with Keshav on gratuity norms adopted by pvt. companies. Regards, Manoj
From India, Delhi
From India, Delhi
Dear Sean123,
I am in agreement with your question. But in industry the concept o CTC is prevailing. As pointed out by Dilip above, you should take up with the prospective employer that in the event you are not required to serve the company for the tenure of five years (qualifying period for payment of gratuity) for no misconduct on your part, they should pay you back the deductions affected towards gratuity as ex-gratia as per the practice prevailing elsewhere.
S.K.Johri
From India, Delhi
I am in agreement with your question. But in industry the concept o CTC is prevailing. As pointed out by Dilip above, you should take up with the prospective employer that in the event you are not required to serve the company for the tenure of five years (qualifying period for payment of gratuity) for no misconduct on your part, they should pay you back the deductions affected towards gratuity as ex-gratia as per the practice prevailing elsewhere.
S.K.Johri
From India, Delhi
1.Gratuity component in CTC is calculated and apportioned @ 4.8% of Basic Pay plus DA. So if the basic plus DA is say Rs. 10,000 pm, then the gratuity component, if apportioned in CTC, will be Rs.480/- pm.
2. Statutory gratuity will be payable to an employee on separation other than death if he completes at least 5 years service in the organization.
3. Where the contract of engagement is only for one year, the organization should pay back the amount apportioned for gratuity in the CTC to the employee in case his contract does not get renewed beyond one year, as this is part of his CTC which the organization has committed to remunerate him. However, in case the contract gets extended and the employee gets to serve the organization for a cumulative period of 5 years due to successive renewals of the contract, then he will be eligible for payment of gratuity as per law calculated on the basic salary that he would be drawing at the time of final sepearation.
Thanks.
G. Hari
From India, Alappuzha
2. Statutory gratuity will be payable to an employee on separation other than death if he completes at least 5 years service in the organization.
3. Where the contract of engagement is only for one year, the organization should pay back the amount apportioned for gratuity in the CTC to the employee in case his contract does not get renewed beyond one year, as this is part of his CTC which the organization has committed to remunerate him. However, in case the contract gets extended and the employee gets to serve the organization for a cumulative period of 5 years due to successive renewals of the contract, then he will be eligible for payment of gratuity as per law calculated on the basic salary that he would be drawing at the time of final sepearation.
Thanks.
G. Hari
From India, Alappuzha
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Fixed Term Contract Employees to get Gratuity.docx