Dear Seniors
Greetings!!!!
We are one of the leading service provider in Bangalore. We have practice of showing Gratuity in employee salary break (in appointment letter). as employer contribution. Im aware that it is payable at end of 4 yrs & 240 days as per the act. Recently I have come across an query from the ex-employee stating, since it is shown in the break of his appointment letter. It is payable to him ir-respective of his tenure in the organisation.
The said ex-employee has completed 3 years with us. Kindly guide me how to tackle the situation.
Regards,
Amar..
From United States, Manchester
Greetings!!!!
We are one of the leading service provider in Bangalore. We have practice of showing Gratuity in employee salary break (in appointment letter). as employer contribution. Im aware that it is payable at end of 4 yrs & 240 days as per the act. Recently I have come across an query from the ex-employee stating, since it is shown in the break of his appointment letter. It is payable to him ir-respective of his tenure in the organisation.
The said ex-employee has completed 3 years with us. Kindly guide me how to tackle the situation.
Regards,
Amar..
From United States, Manchester
Dear Amar,
Well, showing Gratuity in the appointment letter is not a good practice. Many of the companies are showing Gratuity contribution at on offer letter and appointment letter.
Well, in this case you are not bound to pay Gratuity to the employee, since he has not served the organization for 5 yrs.
Tell him that as the company needs to fund some money to the Gratuity trust every year, for every employee which is being hired, therefore the contribution is shown in the appointment letter.
If, you would have completed service for 5 + yrs of service,company must have given you the Gratuity amount.
Since, you have not completed 5ys service you are not eligible for gratuity.
Also, if possible try to withdraw the contribution of gratuity amount while calculating CTC for new joinees.
From India, Delhi
44Well, showing Gratuity in the appointment letter is not a good practice. Many of the companies are showing Gratuity contribution at on offer letter and appointment letter.
Well, in this case you are not bound to pay Gratuity to the employee, since he has not served the organization for 5 yrs.
Tell him that as the company needs to fund some money to the Gratuity trust every year, for every employee which is being hired, therefore the contribution is shown in the appointment letter.
If, you would have completed service for 5 + yrs of service,company must have given you the Gratuity amount.
Since, you have not completed 5ys service you are not eligible for gratuity.
Also, if possible try to withdraw the contribution of gratuity amount while calculating CTC for new joinees.
From India, Delhi
Dear All,
I am having the query in line with the gratuity payment. If an employee has given the extention after attening 60 years up to 65 year. And he has resigned at the age of 62 weather is he elligible for gratuity neither he has completed the duration of 5 years(upto 65) nor its a natural retirement.Your advice please.
From United States
I am having the query in line with the gratuity payment. If an employee has given the extention after attening 60 years up to 65 year. And he has resigned at the age of 62 weather is he elligible for gratuity neither he has completed the duration of 5 years(upto 65) nor its a natural retirement.Your advice please.
From United States
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc