Is is legal to deduct Gratuity from Employee Salery (CTC)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2010 As Per Gratuity Act.After Completion of 5 Years it is Responsibility of Employer to Give Gratuity to there Employee if They Resign/Leave/Terminate that is compulsory/additional Benefit of Employee for there long term Service.
But Some Company Deduct Gratuity from employee Salary & Show it is Part of C.T.C.
So,Is it legal and if Where it is Defined.
Because Legally if Employee Leave/Terminate Service Before 5 year a company not liable to pay Gratuity.
Whet Will Do If it is Illegal?
If Legal then any benefit for employee when resign/terminate before 5 year.
Or any other Benefits for deduction Gratuity from employee salary.

Please Advise.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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16 December 2010 See... The term CTC, itself does not carry any legal standing. So.. an company can not deduct gratuity from salary, that's why they chose to negotiate these terms under the umbrella of CTC (salary being a part of it).

Therefore, as you have rightly pointed out, there is no legal remedy for a person leaving job before 5 years, in terms of gratuity.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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24 February 2011 only if he is terminated before 5 years.. then he can claim the gratuity.

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