Gratuity Payment - Is Rule Or Company Policy? - CiteHR
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dear all,
Yes, irrespective of whether the person is working for your foreign company (on deputation or transfer), as long as he is in the rolls of your company, you need to pay Gratutuity. As someone rightly said, it is not company's policy, it is a statutory obligation.
By the way, I came across something like, when you show the gratuity amount in your CTC computation, you need to pay gratuity whether he completes 5 years or no. Is it right? If any one has any court ruling on this score, can send me the same on throw light in this too.
thanks,
V. Balaji

Dear Sanjay.
Mr.Kannan and Mr. Ramachandra have put things correctly.
The employees current employment is relevant.Gratuity is a legal compliance and needs to be treated with respect.Never violate the legal provisions.
Pl.pay what is due.
Regards
JR Kumar

Hi,
Gratuity is a act and should be followed at any cost by any company registered inIndia
As You said if the employee is under Indian payroll and working onsite at some part of the world outside India Your company has to pay him gratuity if the employee completes 5 years of service
If your company in India has the employee transferred (send) to any sister concern which doesnot have any compliance with Book of Records with Indian ACts Then You can carry on as per the government Act of that particular country where his present Employment is enrolled

you don't have legal dept.?? It is a simple violation of law and being a large IT company how your dept. and the legal dept. is allowing this type of grave non compliances............i dont know.
the person should send a legal notice to your company. then only the employer will understand that parliament is mighter than him so far as policy formulation is concern..........

As per the judgment of Madras High Court, the period to qualify for gratuity is 4 years and eight months and Supreme court has also okayed it.
Thanks for the clear statement about gratutity sir, i would like to know whether company can have different formulas for arriving at the gratutity amount for an employee ? Is that legally advicable ?
There is no ambiguity about who to arrive at a figure for gratuity pay off as per the law. Its basically calculated as follows
1. basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
There is no question of calculating differently.

Dear Mr. Sanjay,
If the employee in question has continuously worked for five years and above on your rolls, , Gratuity is payable till he continued on your rolls.
Thanks
HC. Subbaramu
HR and Labour Law consultant
Bangalore

A confirmed Employee takes leave continously from 13 Oct'10 to 19 Oct'10. In between ther e is pooja holiday on 16 Oct and 17 oct is Sunday. Does he has the right to get to those days a holiday and Sunday off, as he ha s taken continous leave . Please reply Thanks Hari
Dear sanjay,
No policy can be derived against law.if it is derived then itz null and void.from ur question itself everybody can say that u r liable to pay gratuity.but payment of gratuity for the last 7 months where he worked in UK depends upon the agreement between ur company with ur partner in Uk and this should be known to the employee and he should accept for the same.
regards
pragadeesh
8056711888


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