Nikhil 27 June 2017

Gratuity above 10 lacs if there is past precedence

Hi Everyone,

I resigned from my company in Sept 2016. As per my 11 years of service my gratuity calculation came up to 11.5 Lacs. Of course the company paid out 10 lacs as per the cap.

However recently I learned of 3 emplopyees in 2012 and 1 employee in 2015 who negotiated and claimed from the company their amounts above 10lacs as ex-gratia.

I went back to the company and asked in the spirit of fairness and the precendence they have set to pay me also the difference of 1.5 lacs as I have the same employment contract as the others. The company refused saying they paid 10 lacs as per the law.

My question is, can I use the precedence to negotiate through another forum like the labour commssion or court of law? Or will the company's stand of applying exceptions at their discretion will be defended?

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1 Replies

Kumar Doab (FIN) 27 June 2017

The precedence may help.

The contract signed with other employees might have better terms of Gratuity.

The payout about the limit might be subjected to tax treatment.

Show the contract to a very able local senior counsel specializing in labor/service matters of unshakable repute and integrity for a considered opinion.