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Raj Kumar Chauhan

Dear Experts,I work with a small company as an HR. From now on, management wants an undertaking form from every Employee as per the attached. We have already mentioned the same line in CTC. Can we do this, or is it possible? Please help in this matter as soon as possible.
From India, Mohali
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This undertaking will not stand scrutiny of the law of the land. Contracts Act clearly states that you cannot agree to a thing which is contrary to law being in force at that time on that subject. When Payment of Gratuity Act prescribes payment of gratuity as per provisions given in that act, you cannot circumvent those provisions by taking an undertaking to the contrary from that employee.
From India
what is the contents of undertaking is to be known to suggest you the right course of action.
From India, Ernakulam
Raj Kumar Chauhan

Dear Sir, Thanks for your valuable suggestion
From India, Mohali
Agarwal BD

The undertaking will not stand in the court of law. Gratuity will be payable as per the provisions of the Gratuity Act.
From India, Kolkata
ashok pal

How will you calculate Gratuity? Will you not give him increment ? And after 5 years ?
From India, Indore

To my knowledge this Company includes Gratuity provision amount in their CTC package.
However, the Company pays Gratuity as per Payment of Gratuity Act.
The reason for this undertaking is the employee should not demand the Gratuity provision amount from the employer on a monthly basis as it has been shown as part of his/ her CTC.
Companies generally indicate the amount they set aside for Gratuity provision as per the book of accounts. On the other hand the CTC package will increase owing to addition of this Gratuity payment amount provision.

In my opinion the Company need not show it as part of CTC package and indicate that the employee will be paid Gratuity as per provisions of the Gratuity Act.

The Company may not be legally wrong in mentioning Gratuity provision as part of CTC as long as they pay Gratuity to their employees as per provisions of the Gratuity Act.



From India, Madras
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