payment of gratuity

Querist : Anonymous (Querist) 14 July 2010 This query is : Resolved
Dear friends,

would like to have a clarification/thought on generally in CTC the component of Gratuity is shown under which some amount is indicated as receivable.
My query is that the amount underlying under the gratuity is receivable subject to the completion of 5 yrs of tenure/superannuation/death/disablement - if not completed the 5 yrs aren't we liable for withdraw of that amount since the companies at the time of departing they are not paying since you have'nt completed 5 yrs.

in such a case any remedy could be suggested for recovery of the above said amount?

Awaiting for an early response.

Thanks in advance
Regards,
S.Sateesh

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Guest (Expert) 14 July 2010
Every employee who has completed 5 years of service is eligible for gratuity. If the employer is not settling the dues under any pretext, the employee can seek legal remedy by way of sending a legal notice and filing a money recovery suit.

H. S. Thukral (Expert) 14 July 2010
This is an interesting query.

When an employee signs a contract of employment the element of gratuity is shown as payable in the package of emoluments.

In my opinion, it can be claimed in a civil suit though under Gratuity Act it is not payable.

Querist : Anonymous (Querist) 19 July 2010
Dear Harbhajan,

Let me say when u have deprived the right to claim under the act then how can the recovery suit has locus standi

this is a debatable topic better if experts be involved.
Regards,
S.Sateesh

Querist : Anonymous (Querist) 19 July 2010
Dear friends,

when the amount so shown in the CTC as Payable by the company but at the same time depriving the payable of the gratuity since not satisfying requirements unde the gratuity act- as such company just retaining the amount as shown in CTC

If not shown in CTC by the Company then the company is defraying the gratuity act.

pls. clarify on this and solution for this?

Thanks in Advance
Regards,
S.Sateesh

H. S. Thukral (Expert) 19 July 2010
My opinion:
In some contracts some component of the emoluments offered are mentioned as retiral benefits which may include PF/Gratuity etc. while in others there is no such mention. Gratuity then should be read in its literal meaning and would be payable irrespective of the act.

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