Hi, What happens to an employees Gratuity accumulation in a case where he resigns from the organisation with in less than 5 years?
From India, Vadodara
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From India, Vadodara
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Employee is not entitled to Gratuity if he has served less than 5 continuous years of service as laid down in Sec 2A ofPayment of Gratuity Act. So question of accumulations does not arise.
From India, Pune
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3180From India, Pune
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Hi,
As we all know, in the IT industry where employees switch companies frequently, is there any way to carry forward the gratuity, like PF amount? We can see that cess is collected for workers and kept in a common pool in unorganized industries like construction to safeguard the workers' welfare. As there is no strong union and collective bargaining on salary hike, promotion, etc., employees take up new opportunities for better salary and career growth. This is the trend in the IT industry. How should we look at this situation where employees lose their benefits like gratuity?
Parimala
From India, undefined
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As we all know, in the IT industry where employees switch companies frequently, is there any way to carry forward the gratuity, like PF amount? We can see that cess is collected for workers and kept in a common pool in unorganized industries like construction to safeguard the workers' welfare. As there is no strong union and collective bargaining on salary hike, promotion, etc., employees take up new opportunities for better salary and career growth. This is the trend in the IT industry. How should we look at this situation where employees lose their benefits like gratuity?
Parimala
From India, undefined
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"Is there any way to carry forward the gratuity like PF amount?
Gratuity is paid on completion of five years of continuous service as a reward for good service. Once you understand the concept of gratuity, you may appreciate that carrying forward gratuity from firm to firm will not take place. The question of losing benefits arises when you are authorized the benefit and lose it or do not receive it. Gratuity payments are also made to ensure employees continue in a company for some time. If you are mobile, then the loss of gratuity may be factored into your calculations."
From India, Pune
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Gratuity is paid on completion of five years of continuous service as a reward for good service. Once you understand the concept of gratuity, you may appreciate that carrying forward gratuity from firm to firm will not take place. The question of losing benefits arises when you are authorized the benefit and lose it or do not receive it. Gratuity payments are also made to ensure employees continue in a company for some time. If you are mobile, then the loss of gratuity may be factored into your calculations."
From India, Pune
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