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prashant palavajvala   19 June 2024

Company liable to pay gratiuity if the employee exits b4 5yrs,if included in the ctc

My offer letter issued by a IT company had Gratiuity as a component in my offer letter CTC, i quit the company before 5 years, is company liable to pay the gratiuity part of my Full and final settlement?

In the similar instance with my previous company, i received as part of my F&F settlement

Please advice..



Learning

 6 Replies

T. Kalaiselvan, Advocate (Advocate)     19 June 2024

An employee must have completed five continuous years of service to be eligible, with certain exceptions for periods of absence due to strikes, lockouts, accidents, leaves, layoffs, unauthorised absence, or termination initiated by the employer.

In some places it is a criteria to have completyed at least 4 years and 8 months.

You may go through your employment offer letter and make the claim the same  if you are eligible

P. Venu (Advocate)     19 June 2024

CTC (Cost to the Company) is a term unknown to the extant norms governing payment of Gratuity.

ramraghvendra kumar (lawer)     19 June 2024

First make payment my site per qustion 3000 fee

 

Dr. J C Vashista (Advocate )     20 June 2024

Did you complete 4 years 240 days regular service, if yes, you are entitled for gratuity.

However, gratuity cannot be part of CTC.

Ritesh Maity (Labour Law Advocate)     20 June 2024

Under the Payment of Gratuity Act, you are entitled to gratuity if you have served continously for five years or more. If you have served for 4 years and 240 days in the fifth year, then also you are entitled to gratuity. 

There are no provisions under the Payment of Gratuity Act to deduct any amount of salary for the purpose of gratuity unlike dueduction made under ESI/PF. Any deduction made towards gratuity is illegal. 

Now if you leave the orginalization before the qualifying period for payment of gratuity, you may demand the deducted amount towards gratuity but NOT as gratuity but as illegal deduction of salary.

In my view, even if you qualify for the payment of gratuity under the Act, you may demand gratuity as well as the amount deducted towards gratuity separately.

 

prashant palavajvala   21 June 2024

@ritesh Maity, it shown under CTC as 4.81% of basic pay,  can i get your mail id and phone no, i shall contact you


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