Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Gratuity benefits

(Querist) 11 September 2014 This query is : Resolved 
Dear Councels I am working in a private limited company for the past 8 years. Planning to quit. There is nothing mentioned in appointment order or review appraisal letter about gratuity. It just mentions my CTC amount. Pay slip also does not mention about gratuity. Heared from my senior staffs and HR that my company does not provide gratuity. Its an ITES BPO employing over 1000 staffs. Please advise my options if in case gratuity is denied.
Kumar Doab (Expert) 11 September 2014
Payment of Gratuity Act 1972 shall be applicable and Gratuity shall have to be paid even if it is not mentioned in appointment letter.
Rajendra K Goyal (Expert) 11 September 2014
Agree with the expert Kumar Doab.
V.T.Venkataram (Expert) 12 September 2014
I endorse the view of Expert Mr. Kumar Doab
ajay sethi (Expert) 12 September 2014
agree with Kumar Doab
David (Querist) 12 September 2014
I heard from my HR that the CTC (cost to company) is what they pay and they cannot pay gratuity as there is no deduction from my salary even if I worked for more than 5 years
T. Kalaiselvan, Advocate (Expert) 19 September 2014
Gratuity amount is not paid after deducting any amount towards it in the salary. It is a recognition for the gratuitous service rendered by the employee to the organisation. Hence HR cannot refuse it.
Kumar Doab (Expert) 19 September 2014
Law is not hearsay, gossip and rumor and vice versa.................Hearsay, gossip, rumor is not law.............

You may draw the attention of this daffar ( you won't find the literal meaning in dictionary and may have to ask around and you may substitute it with a better and suitable word if available....................)HR personnel to word 'WHOEVER', penalty, punishment with jail time stated in Sec;9 of payment of Gratuity Act.............

Gratuity is without any cost to employee.

If employer has obtained mandatory insurance even then employer can not collect the premia from employee.....................
Moreover it is not an insurance policy.

Employer can insert Gratuity component in CTC sheet maintained in its internal records.

Inserting Gratuity component in CTC sheet issued to employee is erroneous, technically wrong, unfair and in fact detrimental to interest of employer.......................hence employer should ideally and preferably shunt the HR personnel out.........................since even if employee has not completed 5Y he/she can agitate and get Gratuity.There are enough publications showing that employers had to cough out payment of Gratuity.

Ideally all employers should shunt out all HR personnel with such view.................

Ideally all HR personnel should advice the employers properly and to be on right side of law................

Employee can submit ForMI for payment of Gratuity one month before date of retirement (by resignation in your case) of course preferably by redg. post under proper acknowledgment.

The HR personnel apply this well known and time tested tactics so that you don't submit FormI and can be subdued later with false/bad advice that it is hopelessly delayed and delay can't be condoned.

Avoid seeking advice from such personnel and following advice of such personnel.

Rather prefer to discuss with elders in the family and your lawyer and employee's union leaders.

Gratuity can be claimed anytime in lifetime and after lifetime by Legal Heir/Successors.

Hope it shall suffice.

David (Querist) 24 September 2014
Thanks a lot for the advice.
Sudhir Kumar, Advocate (Expert) 08 September 2015
fully agreed with above views. a company cannot have a policy contrary to the law.

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