If company give form no V to any contractor who has having labour licenceand said contractor give sub contract to such contractor who has no labour licence so whether it is statutorily allowable or not .
so please clear the said issue with clause of act

From India, Bharuch
There are three aspects being discussed here. CTC, Offer letter and appointment letter. CTC is an estimate of employee expenses and most companies do not share the actual CTC figures. Offer letter or appointment letter are contract of employment governed by the provisions of the Indian Contract Act. The company includes gratuity as part of CTC to show the candidate that they care for his social wellbeing. But when the employees completes 4 years 239 days and his services terminated then he is not entitled to receiving payment of gratuity. Here the trickology is to show the company pays gratuity but in the terminal settlement it is conveniently omitted.

Nevertheless, if the gratuity is mentioned in the appointment letter, which companies usually avoid doing it, it becomes payable simply because the appointment letter is a contract of employment. Whatever amounts mentioned in the appointment letter is payable to the employee, including gratuity, at the time of termination of service.

From India, Mumbai
Here the contractor shall be considered as principal contractor / employer and therefore liable to comply with the provisions of the Act.
From India, Mumbai
rkn61
463

For the benefit and information of all members, I am attaching a Madras High Court Judgement (very old) which clearly tells the eligibility of payment of gratuity. Though, lot of amendments
have occured in Payment of Wages Act and Payment of Gratuity Act, the crux of the matter
still holds good in todays scenario also.
Thanks

From India, Aizawl

Attached Files (Download Requires Membership)
File Type: pdf MADRAS HIGH COURT-4.6yrs -Judgement Gratuity.pdf (1.46 MB, 165 views)

Dear friends,
I think those who accepted employment looking at CTC carry a high degree of wrong notion as to the size of their package. Every such should focus their attention on the Gross salary, take home pay etc rather then the total CTC. The Gross salary is the very same emoluments on which every such person is to going to live on. The rest of the items on whether listed or not listed, revealed or not revealed, will have its impact only on separation from the present employer. In saying so, it doesn't mean one should't bather about it though.
The gratuity is one such earning among others like accumulated contributions to EPF, interest accrued thereon, EPS, leave encashment etc which matters when the F&F settlement is being made out. Gratuity amount is an earning, lawfully entitled to every employee who completed 5 yrs of 'Continuous service'. Denying this legitimate employee benefit is an offence. I request all those who decide to switch over to other employer shall take a conscious decision keeping in view the quantum of gratuity which might lost forever if they fall short of this stipulation of 5 yrs.CS.
Let us look at it like this- if a PG youth enters his/her first job at the age of 21/22 and can serve upto 60 yrs. In this active working life span, say 37/38 yrs. Hypothetically let's assume he/she switches on to say 5 or 6 jobs serving in each tenure <5 yrs continuous service. Thus there is every possibility that he/she never see a employee benefit known as 'gratuity', an amount maximum of Rs.20 lakhs as per the Act.
The Madras High Court's judgment to the effect that 4 yrs 240 days of CS though everybody is aware for the reasons unknown didn't find a place in any amendment to the Act. And therefore not widely implemented by unwilling employer as it's remains as a judgment of the Madras HC. I'm not sure whether any confirmatory plea is pending in SC so that this amendment can be applied all over the country as and when the SC rules in favour.
Pl.apply your minds on these things.
For ready ref. a gist of the Gratuity act (amendments to be updated) is attached.

From India, Bangalore

Attached Files (Download Requires Membership)
File Type: docx Highlights of PAYMENT OF GRATUITY ACT.docx (14.1 KB, 225 views)

Dear,
Gratuity means "a gift or present, often in return for favours of services." Gratuity is a statutory right of employee whoever completes 5 years in the same organization.
The cost is to born by employer not by employee.
Gratuity cannot be a part of CTC. If company is making it part of CTC you shall be eligible to get the amount even if you have not completed 5 year.

From India, Gurgaon
It is not appropriate to mention Gratuity as a part of CTC. If mentioned, then need to pay even if employee leaves on or before the completion years defined under Gratuity Act. It is therefore advisable to mentioned “Gratuity as per the Payment of Gratuity Act “in the appointment letter.
I had seen in many Telecom Sectors wherein Gratuity is a part of CTC and the same settled by employer as ex-gratia @ 4.81% of basic per month in their full and final settlement even if employee left the organization on or before completion of service-defined period under the said act.
For Example
Basic Salary 10000/- p.m
Gratuity is 15 days basic of every completed years of service
then amount should be divided by 26 to calculate per day salary 10000 /26= 384.6 gratuity is calculated on 26 days multiplied by 15 days means 384.6 * 15 days = 5769/- would be further divide by 12 (because 12 months in a year) means 5769 / 12 = 480.75 this is equal to 4.81 % of 10000 /- pm

From India, Delhi
It is not appropriate to mention Gratuity as a part of CTC. If mentioned, then need to pay even if employee leaves on or before the completion years defined under Gratuity Act. It is therefore advisable to mentioned “Gratuity as per the Payment of Gratuity Act “in the appointment letter.
I had seen in many Telecom Sectors wherein Gratuity is a part of CTC and the same settled by employer as ex-gratia @ 4.81% of basic per month in their full and final settlement even if employee left the organization on or before completion of service-defined period under the said act.
For Example
Basic Salary 10000/- p.m
Gratuity is 15 days basic of every completed years of service
then amount should be divided by 26 to calculate per day salary 10000 /26= 384.6 gratuity is calculated on 26 days multiplied by 15 days means 384.6 * 15 days = 5769/- would be further divide by 12 (because 12 months in a year) means 5769 / 12 = 480.75 this is equal to 4.81 % of 10000 /- pm

From India, Delhi
It is not appropriate to mention Gratuity as a part of CTC. If mentioned, then need to pay even if employee leaves on or before the completion years defined under Gratuity Act. It is therefore advisable to mentioned “Gratuity as per the Payment of Gratuity Act “in the appointment letter.
I had seen in many Telecom Sectors wherein Gratuity is a part of CTC and the same settled by employer as ex-gratia @ 4.81% of basic per month in their full and final settlement even if employee left the organization on or before completion of service-defined period under the said act.
For Example
Basic Salary 10000/- p.m
Gratuity is 15 days basic of every completed years of service
then amount should be divided by 26 to calculate per day salary 10000 /26= 384.6 gratuity is calculated on 26 days multiplied by 15 days means 384.6 * 15 days = 5769/- would be further divide by 12 (because 12 months in a year) means 5769 / 12 = 480.75 this is equal to 4.81 % of 10000 /- pm

From India, Delhi

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