Dear Sir, One of our managers resigned after 3 years of service. He served his 1 month's notice and took his relieving letter as well Character certificate etc.
In his letter of appointment 3 years back, we gave his salary in CTC format and a figure for Gratuity was appearing in the same.
Now he is refusing to take his settlement and demanding Gratuity as stated in CTC of appointment letter.We refused as it is not applicable by law
but we did pay a huge exgratia for his good work and he refused that too.
What should be my action
Kindly guide.

From India, Nagpur
This topic was discussed many times in the past. Please refer the following link
It is very common that Gratuity premium payable to LIC (Under Group Gratuity Plan) is presented in the CTC structure as part of CTC but not necessarily to be paid in case of exit before the completion of five years.

From India, Madras

The manager is clearly not entitled for gratuity.
He has not completed 5 Continuous years as mandated by the Act.
Please draw his attention to the provisions of law regarding eligibility of gratuity.
I am sure you have not deducted any amount towards gratuity.

From India, Pune

IT is known as to what are the contents /proviso in the appointment letter issued to the aggrieved Manager by the company . Unless there is a mention that the payment gratuity will be in accordance with the provisions of payment of gratuity act 1971, the aggrieved Manager can challenge the denial of gratuity to him post separation.
It is therefore advisable not to show the component of gratuity which is linked to prescribed rendition of service ( minimum 5 years) as per statute , as part of CTC in the appointment letter . However the statutory payment( under payment of Gratuity Act 1971) may be mentioned as one of clauses in the letter of appointment

From India, Chennai

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