Dear Experts,
I work with a small company as an HR. From now on, management wants an undertaking form from every employee as per the attached document. We have already included the same requirement in the CTC. Can we proceed with this or is it feasible? Please assist in this matter as soon as possible.
Thank you.
From India, Mohali
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2I work with a small company as an HR. From now on, management wants an undertaking form from every employee as per the attached document. We have already included the same requirement in the CTC. Can we proceed with this or is it feasible? Please assist in this matter as soon as possible.
Thank you.
From India, Mohali
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This undertaking will not stand scrutiny of the law of the land. The Contracts Act clearly states that you cannot agree to a thing which is contrary to the law being in force at that time on that subject. When the Payment of Gratuity Act prescribes the payment of gratuity as per the provisions given in that act, you cannot circumvent those provisions by taking an undertaking to the contrary from that employee.
From India
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From India
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what is the contents of undertaking is to be known to suggest you the right course of action.
From India, Ernakulam
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From India, Ernakulam
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The undertaking will not stand in the court of law. Gratuity will be payable as per the provisions of the Gratuity Act.
From India, Kolkata
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From India, Kolkata
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How will you calculate Gratuity? Will you not give him increment ? And after 5 years ?
From India, Indore
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From India, Indore
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To my knowledge, this company includes the gratuity provision amount in their CTC package. However, the company pays gratuity as per the Payment of Gratuity Act. The reason for this undertaking is that the employee should not demand the gratuity provision amount from the employer on a monthly basis as it has been shown as part of his/her CTC. Companies generally indicate the amount they set aside for gratuity provision as per the book of accounts. On the other hand, the CTC package will increase owing to the addition of this gratuity payment amount provision.
In my opinion, the company need not show it as part of the CTC package and indicate that the employee will be paid gratuity as per the provisions of the Gratuity Act. The company may not be legally wrong in mentioning the gratuity provision as part of CTC as long as they pay gratuity to their employees as per the provisions of the Gratuity Act.
Regards,
MVK
From India, Madras
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In my opinion, the company need not show it as part of the CTC package and indicate that the employee will be paid gratuity as per the provisions of the Gratuity Act. The company may not be legally wrong in mentioning the gratuity provision as part of CTC as long as they pay gratuity to their employees as per the provisions of the Gratuity Act.
Regards,
MVK
From India, Madras
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc