Can anybody please advise if a company asks an employee to resign for any restructuring or cost-cutting for the company's benefit, and if the employee has been working for more than 4 years, should the employee legally claim his gratuity which was included in the CTC?
Regards,
From India, Haora
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Regards,
From India, Haora
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Dear,
No, as you are not eligible to receive gratuity payment at this time. Gratuity shown in CTC is payable only after it becomes payable upon the completion of five years of continuous service with an employer.
Regards,
R.N.Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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424No, as you are not eligible to receive gratuity payment at this time. Gratuity shown in CTC is payable only after it becomes payable upon the completion of five years of continuous service with an employer.
Regards,
R.N.Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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But, if the company asks the employee to leave for its own benefit/cost-cutting against the employee's will and at a very close period of the maturity period of the gratuity, isn't it a planned fraud on the company's behalf? The company can always show the gratuity in the pay package at the time of joining and terminate an employee just before the maturity period of gratuity and pocket the employee's basic social security benefits! I personally believe this is not a fair practice, and the common employees' basic social securities like PF and Gratuity should be given legal coverage by the state against these types of unethical business practices. Invite comments please.
From India, Haora
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From India, Haora
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SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc