Dear Sundesh
a company has option either to follow the Gratuity Act or frame it's own gratuity policy with terms and conditions better than those under the Gratuity Act. if it follows the Gratuity Act , then the gratuity sahll be computed accoding to the formula stipulated in the Act and pay gartuity subject to the maximum of Rs.10 lakhs stipulated under Sub-Sec.(3) of Sec.4. Alternatively, it can frame it's own policy with better computation formula with or without the upper limit. The gratuity that is being referred to by you must be one framed by the company and is beyond the Gratuity Act.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
1897a company has option either to follow the Gratuity Act or frame it's own gratuity policy with terms and conditions better than those under the Gratuity Act. if it follows the Gratuity Act , then the gratuity sahll be computed accoding to the formula stipulated in the Act and pay gartuity subject to the maximum of Rs.10 lakhs stipulated under Sub-Sec.(3) of Sec.4. Alternatively, it can frame it's own policy with better computation formula with or without the upper limit. The gratuity that is being referred to by you must be one framed by the company and is beyond the Gratuity Act.
B.Saikumar
HR & Labour Law advisor
Mumbai
From India, Mumbai
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