Can I Claim Gratuity Before 5 Years? Seeking Clarity on CTC and Legal Terms

Dear all,

I joined an organization on the first of November 2011 and left on the 17th of May 2016. As per my annual increment sheet, gratuity is a part of my CTC. It is not mentioned in that sheet that gratuity will be paid as per the act.

I had a discussion with an HR person who mentioned that I can claim gratuity even before completing five years, provided my salary sheet does not contain a statement that gratuity will be paid as per the act and it should be a part of my CTC.

Please clarify how I can claim gratuity.

Regards

You are entitled to gratuity as per the Payment of Gratuity Act or any amount decided by the employer as gratuity, whichever is higher.

Check my blog at www.labourlawhub.com

Gratuity is payable on termination of employment, either by way of resignation or by termination by the employer.

As for the add, this is the only case in which you are entitled. Of course, nothing stops the employer from paying higher than what the act provides. If you ask me, the employer is not required to pay that amount even if it is a part of your CTC. If they do pay, you are lucky.