Is My Company Wrong to Cut My Notice Period and Include Gratuity in My CTC? Seeking Advice on Final Settlement

My terms of employment include a 30-day notice period. However, due to certain circumstances, I gave my notice to the company and mentioned that my last day would be after 2 weeks. Subsequent to that, I received a letter from the company mentioning the 30-day notice period, to which I acknowledged and returned. However, despite this fact, the company suddenly decided to relieve me of my services within 14 days.

Now, under these circumstances, would I be eligible for a 30-day due since I have acknowledged the letter given to me by HR mentioning my 30-day notice period? Secondly, my pay package mentions a term as Gratuity as part of my CTC. I understand that Gratuity is paid only to employees who complete 5 years of service. Since this component has been part of my CTC since my confirmation, would I be able to claim it? If not, isn't it illegal for the company to mention a component in my CTC if it is not applicable and will only be applicable after 5 years?

Please help me.

Hi, your details are not clear. Still, I have given my view based on my understanding. Your notice period is 30 days, and you have requested the organization to release you within 14 days. Then you have to pay for the 30-14 = 16 days of the notice period salary after adjusting your available leaves for the 16 days. Your company is very smart as, per your request, they are ready to release you, but they will recover the notice period salary after adjusting available leaves. Gratuities will only be provided after completing 4.8 or 5 years of service at your current organization.

Regards, Kugan Paramasivam.

Dear, you are not entitled to receive the balance pay you have requested for upon being relieved after two weeks. You are relieved after two weeks. You are not entitled to gratuity; only if you serve more than 5 years, then you are entitled.

Thank you,
J. S. Malik

But my request for 15 days was turned down. They gave me a letter for 30 days' notice after my request and asked me to acknowledge it. Then they suddenly turned around and, without any information, relieved me in 14 days.

I thank you all for responding from the bottom of my heart. Would I be eligible for a bonus for the period (Apr 08 - Sep 08)?

Can they state that the bonus is a component which is at the discretion of management? I have been paid a bonus for the last few years despite the fact that my salary exceeds Rs. 10,000. The exact statement in my Employment Letter is as follows:

Performance Bonus: This refers to an annual bonus that is paid out in the month of April each year and varies from 0% to 5% of Gross Salary, depending upon Company Performance.

Dear all,

We always criticize employers for their actions without knowing the full details of why your employer did what they did. I recently handled a similar situation where an employee took permission from their Head of Department (HOD), who directly granted permission to leave after 15 days from the resignation date. However, it is the responsibility of the senior to seek approval from the HR Head before confirming with the employee. When the employee received the Full and Final (F&F) statement, they discovered that three months' salary had been deducted (the notice period in our organization is three months).

Employers will definitely assist you if the reason is genuine and true. I kindly request you to review your F&F statement. In our organization, we include gratuity as part of the Cost to Company (CTC), but the accumulated amount will only be paid if the employee completes five years of service (known as Ex-gratia). Please also reach out to your HR personnel for clarification.

Regards,
Sunita

Dear [Recipient],

If the company has relieved you from the actual date of your relieving, i.e., if you have mentioned to be relieved on the 15th of September and the notice period was up to the 30th of September, and the company relieved you of its own accord without your request, i.e., on the 3rd of September, you can claim full salary for the period from the 4th to the 15th of September. Regarding gratuity, you shall not be eligible if you have not worked for 5 years. The question of mentioning in CTC is challengeable if you are not a workman under the Industrial Disputes Act, 1947.

Ak Malhotra