Gratuity

Hi I also.find such type if problem But.i our case we treat, that company.will forfeit.the amount of gratuity payable because the term of continous service is not.more than 5 years So it may be a abnormal income for the company and the institution should.have to refund the amount to.the organization. The institute cannot retain this amount since it.does not belongs to.them Thanking you

I dont agree to this point as I have not read this thing anywhere and this is totally illegitimate. What I have studied is that LIC will adjust the amount with the employees whose gratuity is to be paid in future. .. Can you tell the source of the provision you are talking about.

But it is also stated under the provision of the payment of gratuity act which states that, the employees has the option to request the company to transfer its gratuity amount to the organization garatuity a/c whom he or she is going to be join

From the abobe all I would like sum up for the benifit of all:

1.As per AS-15 organisations are supposed to work out the liability for all employees irrespective of the tenure of service and provide the same in accounts.This amount has to be worked out with the help of an approved valuer. Normally valuation is done on annual basis.The same may be funded or may not be funded.

2.There is no compulsion that the amount has to kept with LIC even the organisation can have a trust of its own funding as per valuation and maitaining as per guidelines of Income Tax Act and discharging the liability as per PGA.

3.Employee has no right to claim the amount unless he completes 5 years of service.But the employer showing it as part of CTC is a bargain between the employer and employee.It is also trasferable from one employee to another provided both the employers agree for the same.

4.When it is kept with LIC the amount in respect of employees who have not qualified to receive the same will be refunded back to the employer or adjusted in future payment by employer.

Hope the poits are clear.

K.Krishna Murty

 

I need clarification on which basic gratuity is calculated in corporate /BPO companies.

1. On the completion of 5 years of service (with out loss of pay i.e. informed and uninformed in the service)
2. On the completion of 5 years of service (with loss of pay i.e. informed and uninformed in the service)
3. On the completion of 5 years of service including notice period of 45days (with or without loss of pay i.e. informed and uninformed in the service)   

 

Example: employee joined a company on 3-8-2009, if he completes 3-8-2014. Then he had successfully completed 5 year with 120 days of Loss of pay, kindly explain whether that employee is eligible for gratuity or not as per Gratuity Act 1972. Kindly send my legal documents (if any)

 

(note: can also send the mail at mpratish22 @ gmail.com)

 

Sir Me 07/01/2013 se 31/03/2015 tak Cash Payment De rahe the. Uske bad mujhe 01/04/2015 laker 10/02/2019 tak Salary Bank Transfer Se mil Rahi thi. but Institute bol rahi ke tumhe sirf 4 years he complete huwa hai. Kya me Gratuity le sakta hu nahi? Reply me Sir. 8169914028