Dear Sir,
One of our managers resigned after 3 years of service. He served his 1 month's notice and took his relieving letter as well, character certificate, etc. In his letter of appointment 3 years back, we gave his salary in CTC format, and a figure for Gratuity was appearing in the same. Now he is refusing to take his settlement and demanding Gratuity as stated in CTC of the appointment letter. We refused as it is not applicable by law, but we did pay a huge ex-gratia for his good work, and he refused that too.
What should be my action? Kindly guide.
From India, Nagpur
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One of our managers resigned after 3 years of service. He served his 1 month's notice and took his relieving letter as well, character certificate, etc. In his letter of appointment 3 years back, we gave his salary in CTC format, and a figure for Gratuity was appearing in the same. Now he is refusing to take his settlement and demanding Gratuity as stated in CTC of the appointment letter. We refused as it is not applicable by law, but we did pay a huge ex-gratia for his good work, and he refused that too.
What should be my action? Kindly guide.
From India, Nagpur
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Hi,
This topic has been discussed many times in the past. Please refer to the following link: https://www.citehr.com/602791-if-gra...y-payable.html.
It is very common for the Gratuity premium payable to LIC (under the Group Gratuity Plan) to be included in the CTC structure but not necessarily to be paid in case of an exit before the completion of five years.
From India, Madras
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1153This topic has been discussed many times in the past. Please refer to the following link: https://www.citehr.com/602791-if-gra...y-payable.html.
It is very common for the Gratuity premium payable to LIC (under the Group Gratuity Plan) to be included in the CTC structure but not necessarily to be paid in case of an exit before the completion of five years.
From India, Madras
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The manager is clearly not entitled to gratuity. He has not completed 5 continuous years as mandated by the act. Please draw his attention to the provisions of law regarding eligibility for gratuity. I am sure you have not deducted any amount towards gratuity.
From India, Pune
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From India, Pune
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It is known as to what are the contents/proviso in the appointment letter issued to the aggrieved Manager by the company. Unless there is a mention that the payment of gratuity will be in accordance with the provisions of the Payment of Gratuity Act 1971, the aggrieved Manager can challenge the denial of gratuity to him post-separation. It is therefore advisable not to show the component of gratuity which is linked to the prescribed rendition of service (minimum 5 years) as per statute as part of CTC in the appointment letter. However, the statutory payment (under the Payment of Gratuity Act 1971) may be mentioned as one of the clauses in the letter of appointment.
Senprithvib6
From India, Chennai
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Senprithvib6
From India, Chennai
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