Hi....
One of our Employee (DOJ) Jan 2002, was transferred to another group company to in the year July 2010 --- Completed 8.5 yrs
From July 2010 till Dec 2011 he was working the 2nd group company & then resigned from service without any intimation.----- Completed 1.5 yrs
In the 1st company his basic salary was @ 60% of the Gross Salary (Gross :- Rs. 8500), but when transferred to the 2nd company his basic salary was revised to 50% of the Gross Salary (Gross :- Rs. 12000) --- in line with all the 2nd company's other employees.
Suddenly he came back to claim his Gratuity amount. May pls suggest what method should be adopted for the Gratuity calculation :-
if we consider 50% Basic Salary for the 10 yrs of service, the employee would loose, whereas if we consider 60% of the Basic Salary, the company would loose.
it was suggested by my HOD, to consider Gratuity of 8.5 yrs @ 60% Basic Salary & for the 1.5 yrs @ 50% of the Basic Salary & make 2 different pay-out cheques from the respective companies
But as per the Gratuity Act, the same has to be payable as per the last drawn salary & from the company in which the employee was working on the last day...
Request to kindly suggest, so that neither the employee nor the company management is on the loosing side...
Thanks & Regards
M GUPTA.
One of our Employee (DOJ) Jan 2002, was transferred to another group company to in the year July 2010 --- Completed 8.5 yrs
From July 2010 till Dec 2011 he was working the 2nd group company & then resigned from service without any intimation.----- Completed 1.5 yrs
In the 1st company his basic salary was @ 60% of the Gross Salary (Gross :- Rs. 8500), but when transferred to the 2nd company his basic salary was revised to 50% of the Gross Salary (Gross :- Rs. 12000) --- in line with all the 2nd company's other employees.
Suddenly he came back to claim his Gratuity amount. May pls suggest what method should be adopted for the Gratuity calculation :-
if we consider 50% Basic Salary for the 10 yrs of service, the employee would loose, whereas if we consider 60% of the Basic Salary, the company would loose.
it was suggested by my HOD, to consider Gratuity of 8.5 yrs @ 60% Basic Salary & for the 1.5 yrs @ 50% of the Basic Salary & make 2 different pay-out cheques from the respective companies
But as per the Gratuity Act, the same has to be payable as per the last drawn salary & from the company in which the employee was working on the last day...
Request to kindly suggest, so that neither the employee nor the company management is on the loosing side...
Thanks & Regards
M GUPTA.