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Sowparnika (Web analyst)     30 June 2010

Gratuity IT companies

I have been working with an IT company of strength 15 since the past 5 yrs. Now I have resigned from my services and would like to know if I am entitled to gratuity. My employers say in case of IT companies it is not a compulsory provision, and hence they do not provide for the same. Need advice/ notes on the same, or would like references from books that say so. I am not sure whom to approach about this problem. Thanks



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 4 Replies

V. VASUDEVAN (LEGAL COUNSEL)     30 June 2010

IT companies are NOT AT ALL Exempted from the purview of the Act. The employer is liable to pay. Hence raise a written demand and if not responded, file a complaint with the local labour authorities.

vasudevan

Charan Kedar.C. (Advocate)     02 July 2010

Hi All,

I would like to know in the gratuity is there any celling limit i.e. only those who earn less than or equeal to 2500 rs only covers under  this act and for other there is no need to pay the gratuity amount after successfully completing the continues service in that particular company. Correct me if i am wrong, as per my knowledge there is no any such celling limit is fixed but i come across in one of the company policy it states it. So please clarify me with relavant section or case law if any for my above query.

Thanks

Charan

Charan Kedar.C. (Advocate)     02 July 2010

Hi All,

I would like to know in the gratuity is there any celling limit i.e. only those who earn less than or equeal to 2500 rs only covers under  this act and for other there is no need to pay the gratuity amount after successfully completing the continues service in that particular company. Correct me if i am wrong, as per my knowledge there is no any such celling limit is fixed but i come across in one of the company policy it states it. So please clarify me with relavant section or case law if any for my above query.

Thanks

Charan

Johnson Poojari (Sr.Manager HR)     02 July 2010

Hi,

Latest  judegment of the Supreme Court even if  u complete 4 yrs and 240 days also ur  entitled  for Gratuity.

Gratuity act is applicable to all. So the Company has  to give the Gratuity. if not then u have full rights to approach Labour Commissioner office.


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