Dear All,
I have come across a case to handle expecting guidance from the Senior Members.
In 2010, Company has made a deed with a Fund House to release Gratuity. As per the Deed, the Gratuity is to be paid on Gross. However the deed was not registered with the IT Department. Till 2012 the Gratuity calculation was done on Gross and since then the company have decided to do the calculations as per Law i.e on Basic (No seprate DA factor as a part of salary). Also, the Company is in a process to amend the current Deed.
Meanwhile a senior employee has retired and demanding the Grauity to be calculated on Gross (as per the pervious deed) and threatning to go to Court of Law. The Company is not agreeing to the same.
What action should be taken? Whether the Company should do the payment on Gross or on basic? What are the legal implications?
I have come across a case to handle expecting guidance from the Senior Members.
In 2010, Company has made a deed with a Fund House to release Gratuity. As per the Deed, the Gratuity is to be paid on Gross. However the deed was not registered with the IT Department. Till 2012 the Gratuity calculation was done on Gross and since then the company have decided to do the calculations as per Law i.e on Basic (No seprate DA factor as a part of salary). Also, the Company is in a process to amend the current Deed.
Meanwhile a senior employee has retired and demanding the Grauity to be calculated on Gross (as per the pervious deed) and threatning to go to Court of Law. The Company is not agreeing to the same.
What action should be taken? Whether the Company should do the payment on Gross or on basic? What are the legal implications?