Under the Payment of Gratuity Act, 1972, gratuity must be paid by the employer after an application has been made by the employee in Form I, within 30 days from the date the gratuity became payable.

Now, my question is, what is the liability of the employer if the application has not been made by the employee? Is the employer still liable to make the payment (gratuity), or are there any other provisions regarding the same?

From India, Calcutta
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Even if application is not made, Employer is liable to pay Gratuity amount failing which interest has to be calculated on the delayed payment.
From India, Tiruchchirappalli
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To add on to what has been mentioned by Kumarresank, it is the responsibility of the employer to locate the departing employee and settle the gratuity payment within 30 days. If the employer fails to do so, they are required to deposit the gratuity amount with the District Labour Officer or any other Officer authorized as the Appropriate Authority under the Act.

Regards,
Madhu.T.K

From India, Kannur
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Hi There, In that case also liability goes with employer and employer needs to ask an employee to make him aware of this procedure. Regards, Mona
From India, Mumbai
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Dear all If the application is not made by the employee. the employer resposibilities to ask the procedure to all the employee.
From India, Patna
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Dear all If the application is not made by the employee. the employer resposibilities to ask the procedure to all the employee. Reetesh Kumar Singh HR Executive
From India, Patna
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Dear Mr. Reetesh/Ms. Madhu,

Some employers are including gratuity in CTC (as 4.81%). Is this correct? If it is, can the employer give the gratuity to an employee after resignation? (Considering that gratuity is claimed after completing 5 years of service).

Kindly update.

Regards,
Sameer

From India, Daman
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Deducting gratuity from the remuneration offered, by whatever term it is called, is illegal. If an employer does so, they are liable to refund it, even if the employee has not completed 5 years of service. Please go through the following link as well: [Madhu.T.K: CTC Vs BTC](http://madhu-t-k.blogspot.com/2010/02/ctc-vs-btc.html)

Regards,
Madhu.T.K

From India, Kannur
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Hi all,

I want to confirm that if an employee does something wrong, and the organization has to file a case against him in court. Can the organization deduct or hold the gratuity of the employee or deduct the expenses of the court case?

Thanks

From India, Mumbai
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Gratuity cannot be withheld if an employee does 'something wrong', but at the same time, the employer can hold the gratuity if the employee has been dismissed from service for an offense involving willful omission or negligence causing damage to the property of the company, violent or riotous acts, or offenses involving moral turpitude during the course of employment. This provision is outlined in section 4(6) of the Payment of Gratuity Act, which is very strict in interpretation. A minor act of violence or immorality may not be sufficient to forfeit gratuity.

Regards,
Madhu.T.K

From India, Kannur
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