Dear Mr. A. Thakare & Mr. Dhingra
Once an appointment letter on CTC basis is accepted by the candidate and he joins the company it is a contract, enforceable by law. (Contract Act). Further performance pay depends on a formula then it is difficult for management to manipulate it, but where it is indicative, it can be subjective. Gratuaity calculation included in CTC is not subjective but is capable of being calculated. All I say is if the CTC includes gratuity and employee leaves in less than 5 years, then employer should compensate him with suitable amount for loss of gratuity included in CTC. If he does not it will be dishonest or unethical.
Filing suit or not is the choice of the employee; considering time taken & expensive, his weakness vis-a-vis fighting a stronger opponent. .....Regards - A S Bhat
Once an appointment letter on CTC basis is accepted by the candidate and he joins the company it is a contract, enforceable by law. (Contract Act). Further performance pay depends on a formula then it is difficult for management to manipulate it, but where it is indicative, it can be subjective. Gratuaity calculation included in CTC is not subjective but is capable of being calculated. All I say is if the CTC includes gratuity and employee leaves in less than 5 years, then employer should compensate him with suitable amount for loss of gratuity included in CTC. If he does not it will be dishonest or unethical.
Filing suit or not is the choice of the employee; considering time taken & expensive, his weakness vis-a-vis fighting a stronger opponent. .....Regards - A S Bhat