Is is legal to deduct Gratuity from Employee Salery (CTC)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 December 2010
As Per Gratuity Act.After Completion of 5 Years it is Responsibility of Employer to Give Gratuity to there Employee if They Resign/Leave/Terminate that is compulsory/additional Benefit of Employee for there long term Service.
But Some Company Deduct Gratuity from employee Salary & Show it is Part of C.T.C.
So,Is it legal and if Where it is Defined.
Because Legally if Employee Leave/Terminate Service Before 5 year a company not liable to pay Gratuity.
Whet Will Do If it is Illegal?
If Legal then any benefit for employee when resign/terminate before 5 year.
Or any other Benefits for deduction Gratuity from employee salary.
Please Advise.
But Some Company Deduct Gratuity from employee Salary & Show it is Part of C.T.C.
So,Is it legal and if Where it is Defined.
Because Legally if Employee Leave/Terminate Service Before 5 year a company not liable to pay Gratuity.
Whet Will Do If it is Illegal?
If Legal then any benefit for employee when resign/terminate before 5 year.
Or any other Benefits for deduction Gratuity from employee salary.
Please Advise.
16 December 2010
See... The term CTC, itself does not carry any legal standing. So.. an company can not deduct gratuity from salary, that's why they chose to negotiate these terms under the umbrella of CTC (salary being a part of it).
Therefore, as you have rightly pointed out, there is no legal remedy for a person leaving job before 5 years, in terms of gratuity.
Therefore, as you have rightly pointed out, there is no legal remedy for a person leaving job before 5 years, in terms of gratuity.
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24 February 2011
only if he is terminated before 5 years.. then he can claim the gratuity.
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