Dear all, let us discuss a n interesting case here. A company had appointed MD on fixed term contract for 4 years and further extended for another 3 years. In agreement clause for gratuity payment @ 4.15% was mentioned. Company again renewed the contract for more two years and gratuity clause mentioned as 2 months basic rate. Now question is whether employee should be paid gratuity as per agreement or as per gratuity rules ie continuous service for 9 years and avg salary of last one year?
From India, Vizianagram City
From India, Vizianagram City
Gratuity will have to be paid as per Payment of Gratuity Act. One cannot contract to pay lesser than legal entitlement-where it is specified how gratuity is to be worked out.
From India, Pune
3124From India, Pune
I think it would be the amount in the agreement or the Amount computed in the method specified in the act, whichever higher
From India, Mumbai
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc