Payment of Gratuity - If an employee left the company before completion of 5 years

SMSUR
Dear Sir, During the negotiation, if the company has taken gratuity amount towards the CTC (As a part of CTC).
If an employee left the company before completion of 5 years. Does the company is liable to pay gratuity being a part of CTC? (Not under the payment of gratuity Act) Please confirm.
kumaracme
The Payment of Gratuity act stipulates that Gratuity would be disbursed for every employee who completed five years of continuous service. If you are not completing five years of service in a company, you would be forgoing this gratuity amount irrespective of the fact that your ACTC includes gratuity amount. Further no act stipulates guidelines for ACTC and its calculations. Also you cannot question that ACTC was under paid in any forum of law. If you raise a dispute a before labour officer concerned, at the worst he can request the management to pay this gratuity amount but if the management not concede the request, you cannot escalate this issue.
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