Is there any rule if an employee works a total of 3 years and he is demanding gratuity and is told that in his CTC letter company shows gratuity.
Is it any rule for that company has to pay gratuity for 3 yrs?
From Nigeria, Sango
Acknowledge(0)
Amend(0)
Is it any rule for that company has to pay gratuity for 3 yrs?
From Nigeria, Sango
Acknowledge(0)Amend(0)
Dear Divya,
In India, gratuity is a statutory terminal benefit of employment solely payable by the employer without any monetary contribution from the employee once the Payment of Gratuity Act, 1972 becomes applicable to the employer's establishment. Thus, the PGA, 1972 is the complete Code in itself in respect of all matters pertaining to Gratuity.
On the other hand, CTC is an accounting aide projecting the overall annual cost incurred by the employer in respect of each employee. Therefore, CTC, per se, cannot be considered as forming part of the contract of employment. The contents of the CTC can help the employer to have an upper hand in bargaining during salary negotiations. Hence, mere mention of the annual contribution to any Gratuity fund by the employer cannot entitle an employee to stake a claim for gratuity when he has not rendered the minimum qualifying service stipulated under the PGA, 1972.
From India, Salem
Acknowledge(0)Amend(0)
6108In India, gratuity is a statutory terminal benefit of employment solely payable by the employer without any monetary contribution from the employee once the Payment of Gratuity Act, 1972 becomes applicable to the employer's establishment. Thus, the PGA, 1972 is the complete Code in itself in respect of all matters pertaining to Gratuity.
On the other hand, CTC is an accounting aide projecting the overall annual cost incurred by the employer in respect of each employee. Therefore, CTC, per se, cannot be considered as forming part of the contract of employment. The contents of the CTC can help the employer to have an upper hand in bargaining during salary negotiations. Hence, mere mention of the annual contribution to any Gratuity fund by the employer cannot entitle an employee to stake a claim for gratuity when he has not rendered the minimum qualifying service stipulated under the PGA, 1972.
From India, Salem
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc