I have completed 5 years in my company and now the company is changing the status from Liaison office to India Private limited. And giving Gratuity to all emplyoees even those who have not completed 5 years also. My question is that is leagal to give Gratuity at this stage because may be I will work in same company for another 5 years or more and the gratuity will be on that last salary drawn. I think I am the looser in this case. As on this amount I have to pay Income tax also where as Gratuity upto 3.5lac as on tdy and after 1st April 2010 will be 10lac tax free.
please advise on my issue.
thanks
From United States, New York
8please advise on my issue.
thanks
From United States, New York
Dear
You have rightly understand the situation. In my opinion they are giving you the full & final payment for your service rendered under the previous company. They will give you fresh offer. They can not forcibly give the gratuity amount with out any cause which is not in line with the requirement of law.
If they are offering the payments under any scheme then go through the scheme carefully.
Opinion/ comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
You have rightly understand the situation. In my opinion they are giving you the full & final payment for your service rendered under the previous company. They will give you fresh offer. They can not forcibly give the gratuity amount with out any cause which is not in line with the requirement of law.
If they are offering the payments under any scheme then go through the scheme carefully.
Opinion/ comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
Dear Khosla ji
I have one quiery regarding the calculation of Gratuity, My comapanies working days are Monday to Friday i.e 5 days a week. And they caclulate monthly salary for working days only.
Still company is running on old name and increments will be effected from 01 April 2010.
It will calculate on enhanced Salary or Salary as on 31st March 2010.
Please advise what will be the formula in this case.
thanks in advance
regds
kuldip
From United States, New York
I have one quiery regarding the calculation of Gratuity, My comapanies working days are Monday to Friday i.e 5 days a week. And they caclulate monthly salary for working days only.
Still company is running on old name and increments will be effected from 01 April 2010.
It will calculate on enhanced Salary or Salary as on 31st March 2010.
Please advise what will be the formula in this case.
thanks in advance
regds
kuldip
From United States, New York
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf