Umakanthan53
Labour Law & Hr Consultant
Nathrao
Insolvency N Gst Professional

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Anonymous
My Organisation is 3 years old and have more than 40 employees & we donot have Gratuity Policy in place. No forms of Gratuity have been filled yet.
Neither the Management would be willing to deduct the gratuity nor employees would be willing to get deduction for gratuity , as the in hand salary will be affected & also already the attrition rate is very high.
Even if I get the forms filled now, I cannot recover the gratuity amount for past & also wont be able to deduct for future.
I would also like to add that we are not deducting PF & have got PF Declaration form 11 signed from the employees, as they don't want any deductions in their in hand salary. Pls advise on the Gratuity Concern.

From India, New Delhi
"Neither the Management would be willing to deduct the gratuity nor employees would be willing to get deduction for gratuity "
Gratuity is to be paid by management to entitled employees on exit from company.
It is the responsibility of management to arrange funds from own sources or by taking suitable insurance policy.
Employees are NOT to be subject to any deduction for gratuity.
Even if shown in CTC no deduction is legally authorised from employees pay.
Please spare time and read Payment of Gratuity Act 1972.
Be more informed and act accordingly
The company falls under PF acts and PF deductions is needed.Please cross check rules.
Violation of welfare laws can be a costly affair.
Consult a labour lawyer and find out what all compliances have to be done.

From India, Pune
Dear friend,
I would earnestly request you to first go through the Payment of Gratuity Act,1972 and the Rules and then the various threads in this site pertaining to gratuity. The PGA,1972 is a complete Code in itself regarding the subject matter of gratuity to industrial employees. Nowhere the Act requires contribution from employees nor it vests the employers with any discretion to give gratuity to his employees once the Act becomes applicable to the establishment. On the whole your post sounds a bit defiant to the Laws of the Land on the untenable reason of lesser take home salary.

From India, Salem
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