You are an HR Manager of a Company ABC Ltd. You have issued a letter of appointment to Mr. Y, which besides others say that an amount “of Rs…..” would be payable to the employee as a gratuity. The letter neither makes reference to the Act nor mentions the period of service required to be eligible for gratuity.
In this situation, answer the following:
a. Is there a minimum period of service prescribed under the Act for the eligibility of gratuity? What is the period and explain the details thereof?
b. If the letter of appointment does not provide a minimum period of employment post which he would be eligible for gratuity or any reference to the Act, can an employee claim the benefits of gratuity? Answer in view of the given facts and circumstances.
c. If the letter of appointment provides for an amount of gratuity which is higher than the maximum amount prescribed under the Act, can an employee claim the higher amount?
d. In the given fact situation, as an HR Manager, what are the changes that you would make in the appointment letter?
e. Do you think you can make changes to the appointment letters issued to other employees, retrospectively, regarding the minimum period of service for entitlement to gratuity? Provide reasons for your answer.
From India, Jaipur