yes true we cannot claim as per the graduaty act it sholud be completed 5 yrs then only it will applicable.
From India, Hyderabad
2From India, Hyderabad
Thanks everyone for your valuable responses.
Would I be able to take any action including filing a suit under the Indian Contract Act if I accept my full and final settlement excluding gratuity/ ex-gratia. Also, even if I have provided "no due confirmation" while accepting the said full and final settlement?
From India, Mumbai
Would I be able to take any action including filing a suit under the Indian Contract Act if I accept my full and final settlement excluding gratuity/ ex-gratia. Also, even if I have provided "no due confirmation" while accepting the said full and final settlement?
From India, Mumbai
Dharmenadra Shah,
You can file a suit asking gratuity but it will be dismissed.
What is the point of spending money on advocate for an amount you are not entitled to?
One must move on and focus upon next job/present job.Some you win some you loose.
Accept it as part of life.
Best wishes.
From India, Pune
You can file a suit asking gratuity but it will be dismissed.
What is the point of spending money on advocate for an amount you are not entitled to?
One must move on and focus upon next job/present job.Some you win some you loose.
Accept it as part of life.
Best wishes.
From India, Pune
I concur with Mr.Nathrao. Perhaps the inclusion of gratuity amount in the CTC might have prompted this question. CTC is the sum total of every component of expenses both direct and indirect incurred by the employer towards an employee on actual and accrual basis. Gratuity being a lumpsum payment on termination of employment due to certain specified reasons is actually a fringe benefit earned by the employee on the basis of blemishless as well as specified no. of years of service under the same employer. So, certainly it can not be an ex-gratia subject to the discretion of the employer. Moreover, no ex-gratia can be claimed as a matter of right.
From India, Salem
From India, Salem
In last post, there was a mistake, the changes are as under
Hence unless and until the specific understanding in writing, the indirect benefits / costs even though mentioned in CTS are NOT payable as per the Law only.
Regards
From India, Pune
Hence unless and until the specific understanding in writing, the indirect benefits / costs even though mentioned in CTS are NOT payable as per the Law only.
Regards
From India, Pune
Gratuity Act is applicable to all establishments, where number of employees, are 10 or more in any day of the preceding 12 months.
Only Basic and Dearness allowance should be considered as wages for the purpose of Gratuity.
Gratuity payment formula:
Example: If an employee leave company after 10 years and his last Basic + Dearness allowance is 10000 then his gratuity will be paid as per following formula.
(10000/26)*15* 10
Please note that above formula will remain same irrespective of employee working in 5 days a week establishment.
employee can claim gratuity even before completion of 5 years in followings cases:
Death (to his nominees)
Disablement
But the quantum of gratuity will be as per act.
From India, Pune
Only Basic and Dearness allowance should be considered as wages for the purpose of Gratuity.
Gratuity payment formula:
Example: If an employee leave company after 10 years and his last Basic + Dearness allowance is 10000 then his gratuity will be paid as per following formula.
(10000/26)*15* 10
Please note that above formula will remain same irrespective of employee working in 5 days a week establishment.
employee can claim gratuity even before completion of 5 years in followings cases:
Death (to his nominees)
Disablement
But the quantum of gratuity will be as per act.
From India, Pune
If terms of appointment mention that the portion of gratuity from CTC will be payable to you if you complete > 5 yrs of service, then the employer is liable to pay. In case you want to claim the same, you will have to seek remedy.
From India, Mumbai
From India, Mumbai
Dear Friends,
Our member Nathrao has correctly mentioned that CTC package should be carefully read by the new joinee and then only accept the offer.
But the new joinee does not know what is CTC means or what is the difference between CTC & salary. In one of the very old post of mine I had mentioned that the HR fraternity itself is confused on this concept. Under the circumstance,how we can expect the employee to understand the CTC concept. I have seen at many places that employees are confused on this aspect by HR guys .
Senior member Shri. Umakanthan has rightly said that CTC is the sum total of every component of expenses both direct and indirect incurred by the employer towards an employee on actual and accrual basis.
I have written on CTC in many posts earlier. I wish to write it again in addition to what Shri. Umakanthan has said.
CTC is not salary. CTC is a concept. It is a total "Cost To Company" on engagement of an employee at actual and accrued.
Cost of Gratuity is included in CTC towards the provisions of gratuity liability. The employer is liable to make the provision of the liability towards Gratuity in his books of accounts on the basis of working by actuary . Alternatively, the employer has to take Gratuity Policy. When employer takes gratuity policy, he has to pay the premium on account of every employee from date of joining itself. This premium is also based on working by actuary covering every employee whether he completes 5 years of service or not.
There is no wrong if employer takes gratuity liability in CTC. But Gratuity is payable to employee only after completion of 5 years of continuous service except in the case of death. This has to be explained by the company or HR guy to the employee.
To avoid any ambiguity, my advise is to mention in the foot note of CTC Structure that the Gratuity is payable only after completion of 5 years of continuous service and there shall be no refund of money taken as Gratuity liability in CTC if employee leaves the services before completion of 5 years of continuous service.
From India, Mumbai
Our member Nathrao has correctly mentioned that CTC package should be carefully read by the new joinee and then only accept the offer.
But the new joinee does not know what is CTC means or what is the difference between CTC & salary. In one of the very old post of mine I had mentioned that the HR fraternity itself is confused on this concept. Under the circumstance,how we can expect the employee to understand the CTC concept. I have seen at many places that employees are confused on this aspect by HR guys .
Senior member Shri. Umakanthan has rightly said that CTC is the sum total of every component of expenses both direct and indirect incurred by the employer towards an employee on actual and accrual basis.
I have written on CTC in many posts earlier. I wish to write it again in addition to what Shri. Umakanthan has said.
CTC is not salary. CTC is a concept. It is a total "Cost To Company" on engagement of an employee at actual and accrued.
Cost of Gratuity is included in CTC towards the provisions of gratuity liability. The employer is liable to make the provision of the liability towards Gratuity in his books of accounts on the basis of working by actuary . Alternatively, the employer has to take Gratuity Policy. When employer takes gratuity policy, he has to pay the premium on account of every employee from date of joining itself. This premium is also based on working by actuary covering every employee whether he completes 5 years of service or not.
There is no wrong if employer takes gratuity liability in CTC. But Gratuity is payable to employee only after completion of 5 years of continuous service except in the case of death. This has to be explained by the company or HR guy to the employee.
To avoid any ambiguity, my advise is to mention in the foot note of CTC Structure that the Gratuity is payable only after completion of 5 years of continuous service and there shall be no refund of money taken as Gratuity liability in CTC if employee leaves the services before completion of 5 years of continuous service.
From India, Mumbai
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.
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc