Bharat Gera
Principal Hr Consultant
Management Consultancy
Service- Hr Manager
+1 Other

I want to know whether any employer a. govt. autonomous organization b. Private organization. can withdraw from paying gratuity... I mean can an employer declare that hence forth no gratuity to any regular contractual employee (who are working for more than 5 year) and employer is paying gratuity to only salaried staff.
Please answer.
20th April 2018 From India, Jaipur
Dear Udit, A contractor staff is also eligible for gratuity if he works continue service of 4 yrs + 240 days and above.
20th April 2018 From United Arab Emirates, Dubai
As regards gratuity is concerned, it is not the nature of employment but continuous service of 5 years ( i.e., 4 years and 240 days) that renders it eligible for payment of gratuity whether it is public sector or private or cooperative sector or any other type of establishment. A statutory payment like gratuity or minimum wages or PF etc cannot be shortchanged by mutual agreement between employer and employee. Remember the Contract Act 1872 principle that any agreement in violation of law is void. If you are so very particular not to pay gratuity then reduce your employment to fixed term below 4 years and 8 months.
21st April 2018 From India, Mumbai
Dear Friend,
This is a very funny question. No employer can refuse payment of gratuity to any employee. Please go through the Payment of Gratuity Act and find for yourself.
The POGA does not distinguish between various categories of employees, it uses the term 'employee' only. So whether it is permanent/temporary/casual/badli/contarctual the employer is legally bound to pay gratuity. An employer is not a legislature to rule that henceforth gratuity will not be paid to contractual employees.
If an employer dares to do that , he will be prosecuted. Being principal employer it is his cardinal duty to pay the gratuity to all of its eligible employees.
Warm Regards
Bharat Gera
HR Consultant
23rd April 2018 From India, Thane
Dear colleague,
No employer can become law unto himself and decide on his own as to whether to apply the Gratuity act or not. If his establishment is covered under it his only option is to bloody well pay the gratuity to eligible employees or in case of default, face the prosecution.
Vinayak Nagarkar
23rd April 2018 From India, Mumbai
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™