I have been working for a Private Company for the past two years. At the time of Joining they gave me a CTC calculation where Gratuity is shown as part of CTC.
Now that the Management wants to retrench some employees stating that they do not have any projects.
Can the retrenched employees claim the Gratuity because it is the act of the management to retrench employees and the employees were willing to work for more than 5 years.
Can someone explain how the retrenched employees can claim their Gratuity since it has been shown as part of their salary.
From India, Chennai
Now that the Management wants to retrench some employees stating that they do not have any projects.
Can the retrenched employees claim the Gratuity because it is the act of the management to retrench employees and the employees were willing to work for more than 5 years.
Can someone explain how the retrenched employees can claim their Gratuity since it has been shown as part of their salary.
From India, Chennai
Dear Chitra
If the HR has shown your gratuity as a part of your CTC, then it is perfectly wrong. Gratuity is given to those who have served for more than 5 years of service in an organisation to recognise the employee's long service at the time of retrenchment / superannuation.
You are not eligible to claim the Gratuity for the 2years service. Here you are eligible for Notice Period as mentioned in your Offer of employment & 1 month salary as Retrenchment Compensation and the leave will be encashed whatever in your credit.
From India, Kumbakonam
1168If the HR has shown your gratuity as a part of your CTC, then it is perfectly wrong. Gratuity is given to those who have served for more than 5 years of service in an organisation to recognise the employee's long service at the time of retrenchment / superannuation.
You are not eligible to claim the Gratuity for the 2years service. Here you are eligible for Notice Period as mentioned in your Offer of employment & 1 month salary as Retrenchment Compensation and the leave will be encashed whatever in your credit.
From India, Kumbakonam
Dear Chitra,
Nowadays most company shows the gratuity amount & retrial benefits in TCTC(Total COST TO COMPANY)incurred by employing a person. Here TCTC is used for projecting the manpower cost/budget and allocation of fund within the company.
You are eligible only for Annual gross components(AGC or CTC) of gross salary, PF contribution by employer, ESI contribution by employer(If applicable), Mediclaim insurance, LSP, medical reimbursement. The gratuity or retrial benefits will be applicable / given to the employees who have served for the period in the company given by the statutory laws.
When a person resign he serves the notice period and leave the company. Similarly if the employer is giving a proper notice as per the appointment letter(1 month or 3 month as the case may be) then you cannot sue the employer.
If the employer is terminating without notice and compensation you can go legally but you cannot claim gratuity in any case unless you serve 5 yrs in the company.
From India, Mumbai
Nowadays most company shows the gratuity amount & retrial benefits in TCTC(Total COST TO COMPANY)incurred by employing a person. Here TCTC is used for projecting the manpower cost/budget and allocation of fund within the company.
You are eligible only for Annual gross components(AGC or CTC) of gross salary, PF contribution by employer, ESI contribution by employer(If applicable), Mediclaim insurance, LSP, medical reimbursement. The gratuity or retrial benefits will be applicable / given to the employees who have served for the period in the company given by the statutory laws.
When a person resign he serves the notice period and leave the company. Similarly if the employer is giving a proper notice as per the appointment letter(1 month or 3 month as the case may be) then you cannot sue the employer.
If the employer is terminating without notice and compensation you can go legally but you cannot claim gratuity in any case unless you serve 5 yrs in the company.
From India, Mumbai
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Madras HC judg regarding gratuity is applicable if workmen is working 4 years 240 days..pdf