Whether to pay Gratuity for the period during which the employee was present on duty but did not perform any work and is not paid wages on the principle of NO WORK NO WAGES, which is upheld by court?

nathrao

3131

Dear Anonymous from Cuttack,
Suggest you take an insurance policy for gratuity coverage from an insurance company.Get quotes from various companies and select the best out of the lot.
Full study of Payment of Gratuity Act and rules will be helpful.
28th October 2018 From India, Pune

tapan-mohapatra

Hi, I am working for one Gurgaon base company last 12 years, they have not registerGratuity Act even though 500 employees working in that organization. now company taking an undertaking letter, not to claim gratuity in the future, they have insisted that do sign the letter, Finally, i have given signed a copy and submitted it. in the future if I will file a case can I get the overall year's gratuity amt? i have attached letter
9th May 2023 From India, Bengaluru

Attached Files (Download Requires Membership)

REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf (75.3 KB, 7 views)

vmlakshminarayanan

952

Hi,

This is not legally correct.

According to the Gratuity Act 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organisation. The gratuity amount is paid to the employees once they retire, resign, or are laid off and Employer cannot claim that it already paid on monthly basis. Even if letter of undertaking is forcibly collected from the employee it will not be valid. Also Gratuity to be calculated from the effective date of joining.

This letter will not be valid even if it is signed by the employee.
9th May 2023 From India, Madras

Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.