I appreciate the contribution of Mr. Umakanthan on the issue of " Gratuity". He explanation in nutshell is quite informative.
Regarding including the Gratuity in CTC:- Inclusion in CTC or not to be included opinion differs, because the concept has no legal support from any of the statutes. It is all an act of glorifying the benefits, that the organisation wants to give to an employee. As long as the system of negotiation of payment of salary and related benefits are bargained, the CTC system prevails. Since the gratuity is charged and provision is created for employee benefits, in its accounts, definitely Company has an option to include it in CTC.
(A) HR.Gayathri's query- raises Two issues-(1) the employee in his fag end of 5 years of service- has absconded-legal suspect whether the gratuity is payable? For the issue no 1 of the question-answer lies in Section 2A of the Act deals which deals with the Continuous service and its explanation- Since the employee has absconded action taken to deal with his absence is not explained, means it is still open. If the management terminates his service as per the service rules or the standing orders, payment of gratuity does not arises. because " Gratuity" is payable on three occasions only (a) on Superannuation (b) on his retirement or resignation (c) On his death of disablement.
Regarding Legal Suspect-it is not elaborated or explained in brief, so no suggestions
Regarding including the Gratuity in CTC:- Inclusion in CTC or not to be included opinion differs, because the concept has no legal support from any of the statutes. It is all an act of glorifying the benefits, that the organisation wants to give to an employee. As long as the system of negotiation of payment of salary and related benefits are bargained, the CTC system prevails. Since the gratuity is charged and provision is created for employee benefits, in its accounts, definitely Company has an option to include it in CTC.
(A) HR.Gayathri's query- raises Two issues-(1) the employee in his fag end of 5 years of service- has absconded-legal suspect whether the gratuity is payable? For the issue no 1 of the question-answer lies in Section 2A of the Act deals which deals with the Continuous service and its explanation- Since the employee has absconded action taken to deal with his absence is not explained, means it is still open. If the management terminates his service as per the service rules or the standing orders, payment of gratuity does not arises. because " Gratuity" is payable on three occasions only (a) on Superannuation (b) on his retirement or resignation (c) On his death of disablement.
Regarding Legal Suspect-it is not elaborated or explained in brief, so no suggestions