Dear Sir,
My brother worked in a reputed company for 4 years. He then left the job and joined another company as a purchase officer. While he was working with the old company, they were deducting a certain amount as Gratuity from his monthly salary. However, after leaving the job, they denied returning the gratuity amount to my brother.
Should he be entitled to receive the amount that was deducted by the company as Gratuity? Please advise.
Thank you.
From India, Chennai
Acknowledge(0)
Amend(0)
My brother worked in a reputed company for 4 years. He then left the job and joined another company as a purchase officer. While he was working with the old company, they were deducting a certain amount as Gratuity from his monthly salary. However, after leaving the job, they denied returning the gratuity amount to my brother.
Should he be entitled to receive the amount that was deducted by the company as Gratuity? Please advise.
Thank you.
From India, Chennai
Acknowledge(0)Amend(0)
He is not entitled to gratuity as per current rules. If the company was cutting/deducting some amount as gratuity,it was an irregular act. Was the deduction show on payslip?
From India, Pune
Acknowledge(0)Amend(0)
3180From India, Pune
Acknowledge(0)Amend(0)
Gratuity Entitlement and Company Practices
Legally speaking, your brother is not entitled to gratuity as per the Act since he has not completed 5 years of continuous service. However, it is a common practice in many companies to include gratuity as part of the CTC, and the company does not pay out this amount if the employee leaves before completing 5 years, citing provisions of the Act. This practice is both inappropriate and illegal on the part of the management, yet it is still being followed.
It is suggested that your brother approach the top management, present the facts regarding the CTC where gratuity has been considered a part of it, and request them to reimburse the deducted amount from his salary.
Regards, R R Kapoor
Vadodara
From India, Vadodara
Acknowledge(0)Amend(0)
Legally speaking, your brother is not entitled to gratuity as per the Act since he has not completed 5 years of continuous service. However, it is a common practice in many companies to include gratuity as part of the CTC, and the company does not pay out this amount if the employee leaves before completing 5 years, citing provisions of the Act. This practice is both inappropriate and illegal on the part of the management, yet it is still being followed.
It is suggested that your brother approach the top management, present the facts regarding the CTC where gratuity has been considered a part of it, and request them to reimburse the deducted amount from his salary.
Regards, R R Kapoor
Vadodara
From India, Vadodara
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc