Dear Sir, During the negotiation, if the company has taken gratuity amount towards the CTC (As a part of CTC).
If an employee left the company before completion of 5 years. Does the company is liable to pay gratuity being a part of CTC? (Not under the payment of gratuity Act) Please confirm.

From India, Rajsamand

Use factoHR and automate your HR processes

Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.


The Payment of Gratuity act stipulates that Gratuity would be disbursed for every employee who completed five years of continuous service. If you are not completing five years of service in a company, you would be forgoing this gratuity amount irrespective of the fact that your ACTC includes gratuity amount. Further no act stipulates guidelines for ACTC and its calculations. Also you cannot question that ACTC was under paid in any forum of law. If you raise a dispute a before labour officer concerned, at the worst he can request the management to pay this gratuity amount but if the management not concede the request, you cannot escalate this issue.
From India, New Delhi

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.

About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2022 CiteHRŽ

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server