yes true we cannot claim as per the graduaty act it sholud be completed 5 yrs then only it will applicable.
From India, Hyderabad
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2From India, Hyderabad
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Thanks, everyone for your valuable responses.
Would I be able to take any action, including filing a suit under the Indian Contract Act, if I accept my full and final settlement, excluding gratuity/ex-gratia? Also, even if I have provided "no due confirmation" while accepting the said full and final settlement?
From India, Mumbai
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Would I be able to take any action, including filing a suit under the Indian Contract Act, if I accept my full and final settlement, excluding gratuity/ex-gratia? Also, even if I have provided "no due confirmation" while accepting the said full and final settlement?
From India, Mumbai
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Dear Dharmendra Shah,
You can file a suit asking for gratuity, but it will most likely be dismissed. What is the point of spending money on an advocate for an amount you are not entitled to? One must move on and focus on the next job or present job. Sometimes you win, and sometimes you lose. Accept it as a part of life.
Best wishes.
From India, Pune
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You can file a suit asking for gratuity, but it will most likely be dismissed. What is the point of spending money on an advocate for an amount you are not entitled to? One must move on and focus on the next job or present job. Sometimes you win, and sometimes you lose. Accept it as a part of life.
Best wishes.
From India, Pune
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I concur with Mr. Nathrao. Perhaps the inclusion of gratuity amount in the CTC might have prompted this question. CTC is the sum total of every component of expenses, both direct and indirect, incurred by the employer towards an employee on an actual and accrual basis.
Gratuity is a lump sum payment on termination of employment due to certain specified reasons. It is actually a fringe benefit earned by the employee based on a blemishless record and a specified number of years of service under the same employer. Therefore, it cannot be an ex-gratia subject to the discretion of the employer. Moreover, no ex-gratia can be claimed as a matter of right.
From India, Salem
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Gratuity is a lump sum payment on termination of employment due to certain specified reasons. It is actually a fringe benefit earned by the employee based on a blemishless record and a specified number of years of service under the same employer. Therefore, it cannot be an ex-gratia subject to the discretion of the employer. Moreover, no ex-gratia can be claimed as a matter of right.
From India, Salem
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In the last post, there was a mistake; the changes are as follows:
Hence, unless and until there is a specific understanding in writing, the indirect benefits/costs, even though mentioned in CTS, are NOT payable as per the law only.
Regards
From India, Pune
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Hence, unless and until there is a specific understanding in writing, the indirect benefits/costs, even though mentioned in CTS, are NOT payable as per the law only.
Regards
From India, Pune
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Gratuity Act is applicable to all establishments where the number of employees is 10 or more on any day of the preceding 12 months. Only Basic and Dearness allowance should be considered as wages for the purpose of Gratuity.
The gratuity payment formula is as follows: For example, if an employee leaves the company after 10 years and their last Basic + Dearness allowance is 10000, then their gratuity will be calculated using the following formula: (10000/26) * 15 * 10. Please note that the above formula remains the same regardless of whether the employee works in a 5-day-a-week establishment.
An employee can claim gratuity even before completing 5 years in the following cases: Death (to their nominees) or Disablement. However, the quantum of gratuity will be as per the act.
From India, Pune
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The gratuity payment formula is as follows: For example, if an employee leaves the company after 10 years and their last Basic + Dearness allowance is 10000, then their gratuity will be calculated using the following formula: (10000/26) * 15 * 10. Please note that the above formula remains the same regardless of whether the employee works in a 5-day-a-week establishment.
An employee can claim gratuity even before completing 5 years in the following cases: Death (to their nominees) or Disablement. However, the quantum of gratuity will be as per the act.
From India, Pune
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If the terms of appointment mention that the portion of gratuity from CTC will be payable to you if you complete > 5 years of service, then the employer is liable to pay. In case you want to claim the same, you will have to seek a remedy.
From India, Mumbai
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From India, Mumbai
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Dear Friends,
Our member Nathrao has correctly mentioned that the CTC package should be carefully read by the new joiner and then only accept the offer.
However, the new joiner may not know what CTC means or the difference between CTC and salary. In one of my old posts, I mentioned that even the HR fraternity itself is confused about this concept. Given this circumstance, how can we expect the employee to understand the CTC concept? I have observed in many instances that employees are confused on this aspect by HR personnel.
Senior member Shri. Umakanthan has rightly said that CTC is the sum total of every component of expenses, both direct and indirect, incurred by the employer towards an employee on an actual and accrual basis.
I have written about CTC in many previous posts, and I would like to reiterate it in addition to what Shri. Umakanthan has stated.
CTC is not salary; it is a concept. It represents the total "Cost To Company" for the engagement of an employee on an actual and accrued basis.
The cost of Gratuity is included in CTC to cover the provisions of the gratuity liability. The employer is obligated to make provisions for the liability towards Gratuity in their accounting books based on actuarial calculations. Alternatively, the employer may opt for a Gratuity Policy, where they have to pay the premium for each employee from the date of joining, based on actuarial assessments, regardless of whether the employee completes 5 years of service or not.
It is not incorrect for the employer to include the gratuity liability in the CTC. However, Gratuity is payable to the employee only after completing 5 years of continuous service, except in the case of death. This information should be clearly explained by the company or HR personnel to the employee.
To avoid any ambiguity, my advice is to include a footnote in the CTC structure stating that Gratuity is payable only after completing 5 years of continuous service, and there will be no refund of the money accounted for as Gratuity liability in the CTC if the employee leaves the services before completing 5 years of continuous service.
From India, Mumbai
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Our member Nathrao has correctly mentioned that the CTC package should be carefully read by the new joiner and then only accept the offer.
However, the new joiner may not know what CTC means or the difference between CTC and salary. In one of my old posts, I mentioned that even the HR fraternity itself is confused about this concept. Given this circumstance, how can we expect the employee to understand the CTC concept? I have observed in many instances that employees are confused on this aspect by HR personnel.
Senior member Shri. Umakanthan has rightly said that CTC is the sum total of every component of expenses, both direct and indirect, incurred by the employer towards an employee on an actual and accrual basis.
I have written about CTC in many previous posts, and I would like to reiterate it in addition to what Shri. Umakanthan has stated.
CTC is not salary; it is a concept. It represents the total "Cost To Company" for the engagement of an employee on an actual and accrued basis.
The cost of Gratuity is included in CTC to cover the provisions of the gratuity liability. The employer is obligated to make provisions for the liability towards Gratuity in their accounting books based on actuarial calculations. Alternatively, the employer may opt for a Gratuity Policy, where they have to pay the premium for each employee from the date of joining, based on actuarial assessments, regardless of whether the employee completes 5 years of service or not.
It is not incorrect for the employer to include the gratuity liability in the CTC. However, Gratuity is payable to the employee only after completing 5 years of continuous service, except in the case of death. This information should be clearly explained by the company or HR personnel to the employee.
To avoid any ambiguity, my advice is to include a footnote in the CTC structure stating that Gratuity is payable only after completing 5 years of continuous service, and there will be no refund of the money accounted for as Gratuity liability in the CTC if the employee leaves the services before completing 5 years of continuous service.
From India, Mumbai
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