Right to gratuity amount deducted from employee's ctc

manmohan khetan (CA, service) (14 Points)

22 August 2012  

Gross CTC of employee as per appointment letter is 20 lacs p.a.. This amount of 20 lacs is broken up in Basic Salary / HRA & Gratuity amount.

From 20 lacs Rs. 50,000/- is deducted for Gratuity and net amount of CTC Rs.19.5 Lacs is paid to employee under different heads over a period of 12 months.

Practice followed by employer is they pay Gratuity amount to employees who complete five years & more of services. Till then annual amount is deducted from annual CTC. If employee leaves before completing five years of servuice, employer eats away all deductions made from annual CTC towards Gratuity

Now employee complete four years and resigns from the company.

My querry is can employee claim refund of Rs.2 Lacs (50,000 X 4) from the employer

Manmohan Khetan