Gratuity - Graguity Applicable [Thread 390215]

Dear Sathish,
Even if the employee is filing the case under the law also he will not be eligible for getting that amount. The gratuity will be under the head of retrial benefits in TCTC.
And if you agree that the employee has to be paid do you agree he has to be paid his variable benefit mentioned in the CTC. unless he fulfill the target he will not get the variable pay similarly unless he completes 5 yrs he will not get his gratuity amount.
Gratuity, superannuation are only retrial benefits which are given by the organisation for the employee who serve long term.

Dear Shenbagarajan K,
We are discussing the issue of Gratuity amount to be mentioned in CTC or not. It is well accepted that mention of gratuity in CTC is not contrary to any law nor it is against the law of natural justice.
But the most important question is what amount of gratuity is be to mentioned in CTC. Should it be the annual employer contribution towards the gratuity fund or should it be total gratuity amount payable on completion of 5 years of service.
If an employer is mentioning total gratuity amount payable on completion of 5 years of service in the CTC, it would be absolutely wrong on the part of the employer and can be challanged on different grounds in the court of law. But if annual employer contribution towards the gratuity fund is mentioned in the CTC, it cant be challenged because the employer is actually contributing that amount in the gratuity fund.
Regards,
Kamal

Dear
What is CTC?it is cost to copany for hiring a employee .This concept of CTC has just come in last 15 years and now all employer are Hiring a person on CTC.Earlier there used to be gross negotiaton.
Empoyer is making his calculation of cost to hire a person and no benefit will be given to him, if time
of entitlement is not completed.
gratuity can not be paid to individual before completing 5 years of service .

Would like add 'CTC is the current hiring cost and not the future 5 years hiring cost of an employee.'

hi,
But my company is paying gratuity if the employee has ony completed 5months,is their is anypossibilities of the same
Pls. help...

Dear kriti,
Gratuity is paid only if the employee has worked in an organisation for more than 5 yrs.
Even though we have a judgement by Madras High court if 4 yrs and 240 days an employee serves he is eligible for gratuity. we cannot make the judgement where ever we want. Each and every organisation has their own policy and even though the gratuity act is common the company can have a policy if the employee is working for continuous 5 yrs is eligible for gratuity and also in many company HR manual/ employee hand book clearly specifies the employee has to serve 5 complete year in the organisation. for gratuity eligibility.
Unless we get an amendment for the gratuity act it is only 5 yrs which is followed by most of the company.