Dear Sirs,
Please advise if any employer can bypass the gratuity act and settle for less than 50% of the actual eligibility by citing their internal rule/agreement. Can an employer prevent an employee from taking legal action for settling for less than the eligible amount and incorporate a clause in their settlement letter that the employee cannot take any legal action? Your valuable comments are appreciated.
Regards,
Arbind
From India, Calcutta
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Please advise if any employer can bypass the gratuity act and settle for less than 50% of the actual eligibility by citing their internal rule/agreement. Can an employer prevent an employee from taking legal action for settling for less than the eligible amount and incorporate a clause in their settlement letter that the employee cannot take any legal action? Your valuable comments are appreciated.
Regards,
Arbind
From India, Calcutta
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Dear Arbindsha,
I would like to draw your attention to Section 14 of the Payment of Gratuity Act, 1972, which clearly states that the provisions of the Act and the Rules made thereunder have an overriding effect over the provisions of any other law, rules, contract, or instrument in relation to the subject matter of gratuity. Therefore, an emphatic no is the answer to your first query.
The right to gratuity is a legal right conferred by the Payment of Gratuity Act, 1972, on an employee, and as such, it cannot be curtailed by means of any other instrument.
From India, Salem
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6108I would like to draw your attention to Section 14 of the Payment of Gratuity Act, 1972, which clearly states that the provisions of the Act and the Rules made thereunder have an overriding effect over the provisions of any other law, rules, contract, or instrument in relation to the subject matter of gratuity. Therefore, an emphatic no is the answer to your first query.
The right to gratuity is a legal right conferred by the Payment of Gratuity Act, 1972, on an employee, and as such, it cannot be curtailed by means of any other instrument.
From India, Salem
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Employer cannot evade responsibility to pay as per Payment of Gratuity Act 1972. Legal right to gratuity cannot be curtailed by any agreement or clause in appointment letter.
From India, Pune
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From India, Pune
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If the employee willingly accepts a gentleman's agreement for a lesser amount of gratuity with an understanding that he will not approach the court of law for the balance of gratuity, it can be settled internally.
However, if the employee decides to pursue the balance amount of gratuity in court after receiving the initial 50%, then you will be required to pay the remaining balance.
Please take all of these factors into consideration.
From India, Hyderabad
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However, if the employee decides to pursue the balance amount of gratuity in court after receiving the initial 50%, then you will be required to pay the remaining balance.
Please take all of these factors into consideration.
From India, Hyderabad
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt