Gratuity in CTC: Should Employers Pay When They Ask Employees to Resign?

At the time of appointment in the CTC, the gratuity amount is included. After 2 years of service, management asks the employee to resign. In the full and final settlement, the employee is asking to be paid the gratuity amount as management asked him to resign not on his own accord.

Guidance for Employees and Employers on Gratuity Payment

Please suggest what to do from the employee's side and the employer's side. Also, share any court order in this regard.

With two years of service, the employee is not eligible to receive gratuity as per the Payment of Gratuity Act 1972. All the CTC denoted is the expenditure incurred for the employee; it cannot be equated as entitlement. CTC is a non-statutory term, a sum derived to indicate the direct and indirect costs to the company with respect to its employees. It is indeed a trap or like the mannequins kept outside the textile shop, to attract the customers (to lure potential employees here).