I humbly disagree with some of the experts here. (some have already disagreed like me, in this thread) Payment of gratuity may be illegal if the employee has not completed 5 years of continuous service, but having committed to treat it as part of the employee cost to company, is it not correct to expect the employer to refund the cost so committed by him through the appointment letter, even by calling it something else? After all he has committed it through the appointment letter. I have even come across a case where the gratuity was paid after completion of even 4 years because it was included in CTC...
He may make it subject to Income tax though.
Further please enlighten me if the gratuity act expressly bars payment of gratuity when the employee does not complete 5 years. True it makes the employer duty bound to make the payment after 5 year of service. Which section bars it without completion of 5 years in case employer still wants to pay it? - A S Bhat
He may make it subject to Income tax though.
Further please enlighten me if the gratuity act expressly bars payment of gratuity when the employee does not complete 5 years. True it makes the employer duty bound to make the payment after 5 year of service. Which section bars it without completion of 5 years in case employer still wants to pay it? - A S Bhat