You may not neccessarily have to litigate.
If you can't handle the matter on your own you may entrust to your seasoned counsel, employee's/trade unions leaders, Labor Law Consultant/Sevice Matters lawyer/Law firm................and they have arbitration/mediation/concilliation skills and may resolve the matter in your favor.
This discussion has happenned at LCI many times.
There are many threads initiated by employees that have succeeded to get Gratuity when it is inserted in CTC at:
https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.VUnh_fB-hkg
and you may also pres the key words in
Box on Right Hand Side of this page ’Search Topics & Posts’ and press ‘Go’…..
It shall be pertinent to discuss that:
If the Gratuity is not inserted in CTC then can employer decline to pay Gratuity? ::::NO.
If the Gratuity is inserted in CTC then can employer decline to pay Gratuity? ::::NO.
- If the Gratuity is not inserted in CTC then can employer decline to pay Gratuity? ::::NO.
Gratuity, and for that matter other statutory benefits like PF,Bonus ate not benefits but statotory obligations of the employer and employer being subordinate,servant, to the law of the land and inferior to the rights of the citizens (employees) of the Republic of India has to ensure compliance to the law of the land…………..
These statutory obligations of the employer to pay Gratuity,are to be fulfilled by employer without any cost to employee…………………….
Payment of Gartuity Act provides for Compulsory Insurance for Gartuity. Some states have issued a notification also to this effect.
Let us assume that:
--- employer does not obtain such insurance…………………..even then employer shall have to mpay Gratuity from its own resources.
---employer obtains such insurance from some FI,LIC……………………….however employer can not rdcover the cost of such insurance and premia/contribution from employee…………….
---LIC or FI declines to make the payment of Gratuity due to any reason or any condition in the policy………………………. even then employer shall have to pay Gratuity from its own resources.
Another Important point is that employer can not keep a penny from payment made by LIC,FI even if the payment of gratuity as per formulae of calculation of Gratuity is lower than the amount disbursed by LIC,FI!!!!! There are judgments by the court of law validating it.
- If the Gratuity is inserted in CTC then can employer decline to pay Gratuity? ::::NO.
Employer shall have to pay Gratuity from its own resources…………………..without any cost to employee.
As per Payment of Gartuity Act,Employer can provide for superior (better) terms of Gartuity.
CTC is negotiated settlement and hence promised annual/monthly payouts to bemade to employee by employer…………………..it is a promise………………………..fruit of labor………………….and can not be breached.
There are employers ………….. advisors/attorneys of employers in HR/Legal Deptts. that even include leave encashment in CTC………….
Tommorow some employers ………….. advisors/attorneys of employers may oine that employer has provided for washrooms and employe should pay for the detergent,tissue paper…………………. On the contrary employer has to provide for wahsrooms…………………….employee’s make the floor dirty by walking on it and employee should pay for cost of sweeper,disinfectant…………………………….On the contrary employer has to keep the premises clean and disease free.
This is nothing but nuisance.
That is why employees succeed against employers.
