Hi,
Lots of confusion,follow these 3 cases:
Case 1 - If you mention Gratuity will be paid as per the gratuity act then you must follow as per the act,it is not company's descrition to pay or not to pay gratuity after an employee has put in 5 years of service.(If it is mentioned in the appointment letter to be paid as per the act implies company is not willing to pay before 5 years and nor company is liable to pay gratuity before completion of 5 years)
Case 2 - If you are not mentioning it will be paid as per the gratuity act,but showing gratuity as a part of CTC then its company's descrition to give it even before completion of 5 years. (Can be paid with F & F settlement as per the formula given by Vivek)
Case 3 - However it is mandatory ,weather it is mentioned in the appointment letter or not if an employee has completed 5 years of service he must be paid gratuity as per the rule of the land (India).
Lots of confusion,follow these 3 cases:
Case 1 - If you mention Gratuity will be paid as per the gratuity act then you must follow as per the act,it is not company's descrition to pay or not to pay gratuity after an employee has put in 5 years of service.(If it is mentioned in the appointment letter to be paid as per the act implies company is not willing to pay before 5 years and nor company is liable to pay gratuity before completion of 5 years)
Case 2 - If you are not mentioning it will be paid as per the gratuity act,but showing gratuity as a part of CTC then its company's descrition to give it even before completion of 5 years. (Can be paid with F & F settlement as per the formula given by Vivek)
Case 3 - However it is mandatory ,weather it is mentioned in the appointment letter or not if an employee has completed 5 years of service he must be paid gratuity as per the rule of the land (India).