1. The Gratuity Act states that gratuity is payable on completion of 5 years only. Can a company have a policy to pay gratuity on completion of say 3 years also or is the min 5 years term mandatory.
2. If it is 3 years, how do we communicate that to the employees.
thanks
Yes, company is free to offer better terms than what is prescribed under the Act and therefore a policy decision could be taken to pay gratuity on completion of 3 years.
Convenient mode of communication can be selected based on number of employees, past practice etc. It could inclue display of notice on board, individual letters, e-mail to HODs, HR policy manual amendment, website etc. etc.
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