Can an employee claim for gratuity after leaving 2 years of service if it is given as a part of CTC as per the terms & conditions of the appointment letter?
From India, Jaipur
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From India, Jaipur
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The word CTC means "Cost to Company." When appointing anyone in the organization, we assume that they will stay for a longer period. That's why we include the gratuity as part of the CTC. I believe you are not deducting it from their monthly gross salary.
Therefore, the company is liable to pay the gratuity only after the completion of continuous service of 5 years. Hence, the employee cannot claim their gratuity after 2 years of service.
NOTE: I don't have the terms and conditions of your appointment letter. Otherwise, I could have elaborated more. Hope this helps with your query.
From India, Ahmedabad
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32Therefore, the company is liable to pay the gratuity only after the completion of continuous service of 5 years. Hence, the employee cannot claim their gratuity after 2 years of service.
NOTE: I don't have the terms and conditions of your appointment letter. Otherwise, I could have elaborated more. Hope this helps with your query.
From India, Ahmedabad
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What in case it it shown as part of Fixed Cost to Company in Appointment letter ?
From India, Jaipur
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From India, Jaipur
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The gratuity component in CTC doesn't mean it is your contribution or any deductions from the wages. The gratuity becomes payable only upon completion of five continuous years of service, but not less than the eligible years. Your service period is too short to be eligible for gratuity.
From India, Mumbai
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From India, Mumbai
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