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Gratuity Payable only if employee put in 5 years of service – HC
Case Law Details
- Case Name
- R.K.V. Govindaraj Vs V. Chellaiah (Madras High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Madras High Court
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 04/11/2011
W.P. (MD) No. 4112 of 2009 & M.P.(MD). No. 1 of 2009
R.K.V. Govindaraj
Vs.
1. V.Chellaiah
2. The Assistant Commissioner of Labour,
3. The Joint Commissioner of Labour, Appellate Authority, Madurai.
PRAYER
Writ Petition filed under Article 226 of the Constitution of India praying for the issuance of writ of Certiorari calling for the records pertaining to the impugned order, dated 31.03.2009 passed in PGA No. 55 of 2008 on the file of the third respondent and quash the...
Sir,
I have worked in a concern as office manager for 18 years.
After 18 years, the have asked me to leave the service since they are changing their nature of job.
What is my gratuity Eligibility ?
a) 18 X 15 days / 26 days salary ( basic + da)
b) 18 X 30 days / 26 days salary ( basic + da + special allowance etc…)
c) 15* X 30 days / 26 days salary ( basic + da + special allowance etc…)
Kindly confirm.
My friend told I will be eligible for full salary (30 days / year ) since I have worked 10+ years
My basic 20,000 + DA 0 + Other allowances 30,000 = 50,000.
Kindly guide me.
I has been completed 4 years 214 Day. am i eligible for the payment of gratuity?
Pl. Advice.
Pl. also tell me from where I can free download All details about Gratuity.
Thanks & Regards,
Mayank Kumar
+91 9958062244
1 Employee has been completed 4 years 7 moths. Is he eligible for the payment of gratuity?
Pl. Advice.
Pl. also tell me from where I can free download All details about Gratuity.
Thanks & Regards,
SANJAY KAYASTH
90990 69360
Dear Srikanth,
The term CTC is undefined in any Act / Law. However, in Corporate vocabulary, CTC is ‘the total money invested in an employee during his tenure in the company’. Gratuity is also part of the investment made by the company and is around 5% of the Basic Pay.
Gratuity Act says (in Section 4) 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:
If an employee resigns before the stipulation period, he is NOT entitled for Gratuity – even if the CTC says so. The contention of the employers is that any employee who joins on the CTC, they expect him/her to works for minimum stipulation period for earning Gratuity.
Therefore, it is fair if a employee doesn’t expect Gratuity at leaving before the stipulation period.
Rajusiachen
i have required Income tax, service tax Excise and Corporate law updates
Dear Sir,
in reference to the above, i would like to know some details. as these days most of the companys are following the term CTC ( cost to company) which included all the costs on the employee like Employer contribution of PF, Mediclaim if any, PF Admissiable expenses of 1.61% on Basic, Grauity etc.
these are included in the CTC. so as per the above order, the grauity will be paid only if the employee completes the 5 years service with the organization.
but in this case as the amounts are deducted from the CTC of the Employee, can u please let us know whether these amounts should be returned or not when the employee resigns even before completing the 5 years term
thanks
Srikanth Alladi
9703020990