Dear members,

My company gives CTC breakup (on monthly & yearly basis) to new joinee. In breakup, gratuity is mentioned but new joinee left his services before completion of 5 years that times what i do, pay the Gratuity amount or not ???

Waiting for your guidance

Thanking you

kumar

Kumar,

Section: 4 / Payment of gratuity.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, -

(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

It clearly states that if the employee is resigning the organnisation before five years it is not mandatory to pay the gratuity amount to that employee

Hope it has solved your problem.

Dipankar

Dear Kumar,

As mentioned by our fellow member Dipankar. As per law gratuity is not payable in this case. However management has the discretionary power to decide to pay gratuity or not as it is considered while calculation of CTC.

Regards,Savita