Hi,
One of my Friend had worked for a IT company since 2002 till 2013. Now he is in a notice period. There was no gratuity paid to any of the employees in that company or there was no such deductions done in the salary payments.
The company was registered as limited company and has been having a strength of more than 12nos always since 2005. EPF has been deducted from the employees.
Is the gratuity applicable to the employees? Can my friend claim the gratuity amount. Or company is not liable to pay gratuity unless it is registered anywhere or deduct salaries for gratuity funds?
From India, Madras
One of my Friend had worked for a IT company since 2002 till 2013. Now he is in a notice period. There was no gratuity paid to any of the employees in that company or there was no such deductions done in the salary payments.
The company was registered as limited company and has been having a strength of more than 12nos always since 2005. EPF has been deducted from the employees.
Is the gratuity applicable to the employees? Can my friend claim the gratuity amount. Or company is not liable to pay gratuity unless it is registered anywhere or deduct salaries for gratuity funds?
From India, Madras
Dear company is liable to pay gratuity as company has more than 10 employees and covered under PF act.
From India, Delhi
167From India, Delhi
Dear Mr. Malik, Mr. Sunil,
Thanks for your replies. On the part of employee, he is eligible. For company, do they have to be registered anywhere or maintain any compliances or deduct any amounts from salary of employees for gratuity.
Because this company has not done any such for gratuity. But they do registered and deduct and pay epf.
From India, Madras
Thanks for your replies. On the part of employee, he is eligible. For company, do they have to be registered anywhere or maintain any compliances or deduct any amounts from salary of employees for gratuity.
Because this company has not done any such for gratuity. But they do registered and deduct and pay epf.
From India, Madras
Dear ....,
During joining of employee company made CTC including gratuity amount(if gratuity is there in the company) and mention the bifurcation clearly in appointment letter. I would like to suggest, ask your friend if such happened during his joining. If the company made CTC excluding Gratuity or if there was no deduction from monthly salary as gratuity that means there was no gratuity process. But as per your statement if the company is limited company then gratuity should be there with deduction depends on annual CTC.
Kindly let me know if anyone/any expert needs to bring any changes at my thinking.
Sincerely,
Mimu143
From India, Mumbai
During joining of employee company made CTC including gratuity amount(if gratuity is there in the company) and mention the bifurcation clearly in appointment letter. I would like to suggest, ask your friend if such happened during his joining. If the company made CTC excluding Gratuity or if there was no deduction from monthly salary as gratuity that means there was no gratuity process. But as per your statement if the company is limited company then gratuity should be there with deduction depends on annual CTC.
Kindly let me know if anyone/any expert needs to bring any changes at my thinking.
Sincerely,
Mimu143
From India, Mumbai
Dear Mimu,
Thanks for your reply on the Gratuity Applicability. My friend's company has not included the grauity in the confirmation letter. It has stated only the EPF alone.
Also in the policy document, it states the EPF, Mediclaim Insurance on the part of Employee benefits. It also has a clause for long tenure bonus, but doesn't provide to anyone.
So my friend cannot claim the grauity, is that so?
From India, Madras
Thanks for your reply on the Gratuity Applicability. My friend's company has not included the grauity in the confirmation letter. It has stated only the EPF alone.
Also in the policy document, it states the EPF, Mediclaim Insurance on the part of Employee benefits. It also has a clause for long tenure bonus, but doesn't provide to anyone.
So my friend cannot claim the grauity, is that so?
From India, Madras
Hi,
1. A company will come under the purview of Gratuity Act if there are 10 or more employees.
2. Such companies are liable to submit the notice of opening to the controlling authority (ALC) of that region, form available on the net.
3. Gratuity is not to be recovered from employees showing in CTC and later paid, It is paid to an employee for the gratitude of his/her service for continuous service.
4. Gratuity is due within 30 days from the day it falls due.
5. A deprived employee can approach ALC, seeking justice in the matter.
From India, Bangalore
1. A company will come under the purview of Gratuity Act if there are 10 or more employees.
2. Such companies are liable to submit the notice of opening to the controlling authority (ALC) of that region, form available on the net.
3. Gratuity is not to be recovered from employees showing in CTC and later paid, It is paid to an employee for the gratitude of his/her service for continuous service.
4. Gratuity is due within 30 days from the day it falls due.
5. A deprived employee can approach ALC, seeking justice in the matter.
From India, Bangalore
Dear Sudinair,
I have doubt with the point number 3. As per my knowledge gratuity is the part of Cost to the Compnay (CTC).And thank you for your reply.
Dear .....,
As per your statement, your friend can claim the bonus because the clause has been mentioned by the company in written.
Sincerely,
Mimu143
From India, Mumbai
I have doubt with the point number 3. As per my knowledge gratuity is the part of Cost to the Compnay (CTC).And thank you for your reply.
Dear .....,
As per your statement, your friend can claim the bonus because the clause has been mentioned by the company in written.
Sincerely,
Mimu143
From India, Mumbai
To be eligible for Gratuity one has to put a minimum service of 5 years. Then only he is eligible, whether the employer mentioned in the CTC biburcation or not.
The calculation for gratuity is
Last drawn salary divided by 26 and multiplied by 15days for number of years service.
There is no need to register for this separately, the Registration with the Labour Department itself enough.
Mohan
From India, Vijayawada
The calculation for gratuity is
Last drawn salary divided by 26 and multiplied by 15days for number of years service.
There is no need to register for this separately, the Registration with the Labour Department itself enough.
Mohan
From India, Vijayawada
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc