During the negotiation, if the company has included a gratuity amount as part of the CTC, is the company liable to pay this gratuity if an employee leaves before completing 5 years? This is not under the Payment of Gratuity Act. Please confirm.
From India, Rajsamand
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From India, Rajsamand
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Gratuity Payment and ACTC Guidelines
The Payment of Gratuity Act stipulates that gratuity is disbursed to every employee who completes five years of continuous service. If you do not complete five years of service in a company, you forfeit this gratuity amount, irrespective of the fact that your ACTC includes the gratuity amount. Furthermore, no act stipulates guidelines for ACTC and its calculations. Also, you cannot legally question that ACTC was underpaid in any forum of law. If you raise a dispute before the concerned labor officer, at worst, he can request the management to pay this gratuity amount. However, if the management does not concede to the request, you cannot escalate this issue further.
From India, New Delhi
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425The Payment of Gratuity Act stipulates that gratuity is disbursed to every employee who completes five years of continuous service. If you do not complete five years of service in a company, you forfeit this gratuity amount, irrespective of the fact that your ACTC includes the gratuity amount. Furthermore, no act stipulates guidelines for ACTC and its calculations. Also, you cannot legally question that ACTC was underpaid in any forum of law. If you raise a dispute before the concerned labor officer, at worst, he can request the management to pay this gratuity amount. However, if the management does not concede to the request, you cannot escalate this issue further.
From India, New Delhi
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