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Hi all, If Gratuity is being deducted from the monthly take home, will the employer be liable to pay for Gratuity if the employee leaves the organisation before 5 years ? If not, what happens to the amount that is being deducted towards Gratuity ?
From India, Bengaluru
No deductions of Gratuity must be done from the salary of the employee. The practice of deductions from employee salary is not in accordance with law.
When an employee fulfill the conditions as stipulated by Gratuity act, he/she will receive gratuity as per the same.
Gratuity payability is the accountability of the employer.
Under no circumstances has the gratuity amount to be deducted from the employee salary.( monthly / quarterly whatever may be the case)
Employer is required to make provisions for gratuity in his company accounts so that in future when the need comes to pay employee gratuity, they are not burdened by the same.

From India, Mumbai
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