In the guise of CTC (cost to the company) few companies are reportedly deducting gratuity amount
or appropriating some amount from the monthly payment of salaries to the employees.
Yet some companies are saying that the amount is paid to LIC.
The spirit of gratuity is the amount is paid to the employee at the cessation of employment subject to relevant rules. The payment is required to be paid by the employer (not a contribution by an employee like P.F. contribution).
Any legal precedents exist regarding irregularity or delay in payment of gratuity.
Learned colleagues may kindly enlighten me on this issue. thanks
dr vedula gopianath vgnath@gmail.com
