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Arjun (System Analyst)     29 July 2011

Gratuity calculation

Dear Sir,

 

I have been working with an IT company since 5.9 years. I have resigned 15 days back and currently serving the notice period of 2 months. My current basic salary is Rs.32500/-. As I am eligible for Gratuity, I requested our finance department to provide the approximate amount that I am going to receive towards my Gratuity component and as per them it will be Rs.92000/-. But they have shown that 12% of my basic towards Gratuity in my offer letter and subsequent inclement letters. When I calculate the amount according to 12%, it is around Rs.193000/-. The issue is that there is a huge difference (Approximately Rs.100000/-) between the amount shown towards the Gratuity component in my CTC and the actual amount that I am going to receive.

 

The amount shown towards gratuity (From 14Oct2005 to 11Sep2011)     193642

The amount I am going to receive (as per our finance department)          92000

Difference in the amount                                                                            101642

Please see the attachment for my offer letter and the latest increment letter.

Can you please advise me to get the complete amount i.e. Rs 193642/-?

 

Thanks and regards,

Arjun



Learning

 7 Replies

Advocate Rajkumarlaxman (Advocacy)     29 July 2011

In your offer letter there is a clause of per year increment. in that case they will state that your increment/gratuity  though increased would be per year and in that case they have deducted the same for that reason. i have also sent a notice in the same regard as your docuemnts are not engough you can go through the notice and if you have any query further hen lety me know.

 

        DATE: 09-06-2011

                     MUMBAI

LEGAL NOTICE

 

TO,

          Shri. Dilip Dhadiwal

Managing Director,

Rajdeep Publicity Pvt. Ltd,

4, Liberty Society II

North Main Road, Koregaon Park.

Pune 411 001.

 

Sir,

          Under instructions and information furnished by my client Shri. Sagar Rameshlal Fulfagar, I am addressing this notice to you which may please note.

 

1.       My client was appointed as Marketing Executive on 14.01.2008 in your Pune Office and for the same you issued a appointment letter dated 14-01-2008 vide bearing No.RPPL:P & A;2008:079 with total emoluments under grade E-11 of Rs.10,000/- per month. 

 

2.       My client states that considering at his remarkable performance you decided to increase his pay scale and with the pay scale in the series of 2200-275-3300-375-4800-525-6900-675-9600-850-13000-1050-17200 as on dated 01-10-2008. With this, the scale of my client was raised and went with cluster E-14 as Rs.14000/-. Further in view of the sound performance and Business development of the company within six months on account of my client’s efforts you were impressed and hence under cluster E-16 an increment of Rs.2,000/- was done on 04.04.2009.

    

 

 

 

/2/

                                                            

 

3.       Satisfied and appreciable performance of my client went on with you in such that the company required an Executive at its Mumbai Office as the same was not doing well and hence you transferred my client to Mumbai office for further expansion of the company. You decided to transfer my client to Mumbai office to look after the affairs of the company at Mumbai by a letter dated 27-03-2010 by relieving my client from 31-03-2010 from the Pune Office.

 

4.       Proportionately you issued my client interim office order stating that to compensate the transfer, the management shall pay allowances. The copy attached herewith clearly shows that it was decided, my client would be receiving an amount of Rs.7,000/- per month as additional allowance [interim relief] in addition to the fixed monthly remuneration from 1st April 2010 i.e. from transfer date at Mumbai Office.  

 

5.       In order to peruse better further future prospects and development, my client decided to leave the Company and issued to you notice as per law requesting you to relieve him from the services of the Company. He gave his resignation to you dated 28-12-2010 and the same was accepted by you. After all the clearances from the respective departments and handing over all the belongings of the company my client was relieved from the services from 27-01-2011 after office hours.  

 

6.       But surprisingly you have not paid the entire dues to my client and the pay for the month December 2010 and January 2011 which should also include the interim relief and incentives as my client was relieved from Mumbai Office and as per your letter; copy attached herewith. The amount due also should include the incentives for the financial year 2008-09, 2009-2010,

 

                                                             

 

 

/3/

 

 

Infact suppressing all these, you have sent me a cheque bearing No.147810 of Rs.6,269/- drawn on Axis Bank Dated 26-02-2011 which was sent to me by registered post received by me on 09-04-2011 stating that the amount sent is full and final settlement which is not correct. My client called up several times to the concerned department and enquired about the same but no fruits came up and hence my client has issued this legal notice to pay the amount due from you. 

 

Attached herewith all the relevant copies of the letters issued to my client from time to time appreciating his performance in the long go.

 

In the circumstances, you are hereby called upon to pay my client the deficit amount of Rs.81,000/- due and payable to my client within 15 days from the date of receipt of this legal notice, failing which my client shall approach proper court of law or forum inter-alia for deficiency of service on your part and in that case you will be held responsible for the costs and consequences including this notice charges amounting to Rs.2000/-.which please note.

 

 

           Yours Truly,

 

Advocate Rajkumarl. A. Rajhuns.

 

Enclosure as Above:      

Sanjeev (Lawyer)     29 July 2011

Your company is correct in calculation as per the Gratuity rules the employee is eligible for 15 days salary for each completed year of service on the basis of salary last drawn. As your last drawn basis is Rs 32500 the calculation shall be as under:

 

32500*15/26*5= Rs 93,750 or if they consider it as 6 years so max it can be 32500*15/26*6=Rs 1,12,500.

Sanjeev (Lawyer)     29 July 2011

A month is considered to be of 15 days so the denominator is 26

Arjun (System Analyst)     29 July 2011

Thank you Mr.Sanjeev, As per the calculation you are correct, but they have shown 12% of my basic towards my gratuity component which is included into my CTC and while paying back it is just 4.8% of my basic only. Is this a correct rule? Should I loose rest of the amount?

 

Sanjeev (Lawyer)     29 July 2011

the amount of 12% mentioned in your offr letter is just the provision made by the company for liability towards Gratuity- its just a approximate amount the company included that it shall have to incur for approximating your gratuity liability.

If you think it works this way than if you would have left in 2 years itself than also you will ask for 12% gratuity which is not the case.

The calculation is done and paid as I stated above your assumption of 12% is wrong and not admissible. Its just a figure company included in your CTC.

Arjun (System Analyst)     29 July 2011

Mr Sanjeev, if I would have left the company in 2 years, I would have not thought about the Gratuity at all as I would  have not eligible for it. Since it is shown into my CTC and I completed 5 years in the company I am asking about the same.

If they are not paying back why shoud they show 12% into my CTC? Just to show more as my CTC?

r.dwarakanathan (PARTNER)     30 July 2011

Mr. sanjeev is right. The 12% mentioned is only ctc to show the cost to the company.

R. DWARAKANATHAN

LABOUR LAWYER & MANAGEMENT CONSULTANT

CHENNAI


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