Gratuity payment
Farhad Kapadia
(Querist) 29 May 2014
This query is : Resolved
Dear Sir/ Madam,
If Gratuity is a part of CTC of employees can an employee claim gratuity if he has not completed 5 years of service at the time of leaving the Company. It may be noted that the same (Gratuity amount) is deducted from his/her salary on a monthly basis
Is there a Supreme court Judgement recently to that effect
Regards,
CA Farhad Kapadia
Kumar Doab
(Expert) 29 May 2014
Payment of Gratuity is by employer to employee without any cost to employee.
The employer that has obtained mandatory insurance or has created Gratuity Fund with say LIC pays fixed amounts to LIC………………………………….It is not a premia and can not be deducted from employee.LIC pays interest to employer.
If employer has been deducting the Gratuity component from annual package/monthly package of employee then it has to pay it back to employee+ interest it has accrued………
Rajendra K Goyal
(Expert) 29 May 2014
Deduction from the salary of a person are his money to be paid when leaving the service.
