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(Guest)

Fixation of gratuity amount

Sir, In private sector employer arbitrarily fix basic salary. DA is not correlated to basic salary. The employer pays handsome remuneration in other allowances, keeping basic and DA as low as possible so as to avoid larger PF and Gratuity liability. When an employee retires from such organiation he gets very minicule retiral benefits. Is there any law/ precedent whereby this issue has been raised and court has given any guideline. 



Learning

 2 Replies

SHREY DAMBHARE   19 September 2017

It depends upon number of employees working in your company and establishment. Please provide details in respect of nature of company and how many workers are working in your company. If Provident Fund or Gratutity is applicable on your company then labour union of your company have to give representation to Provident Fund Commissioner for directing your employer to pay Provident Fund, same with gratutity. In your case Industry & Labour Commissioner is the first person to whom you will have to approach.  

Kumar Doab (FIN)     20 September 2017

The break up of wages is same right from DOJ or changed later?

If changed then did employee sign the acceptance?


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