Ashwini krishnen (self) (48 Points)
21 July 2010Hi,
Is a Private Limited Company, not registered under payment of gratuity act, is it mandatory on the part of the employer to pay gratuity if an employee completes 5 years of service and the appointment letter is silent on the payment of gratuity.
Can the company refuse to pay gratuity to the employee. Can a company is demanding under which company law it should be paid.
Ashwini Krishnen
CS Vijay Daxini
(At Practice)
(732 Points)
Replied 21 July 2010
payment of gratuity is covered by following 3 situations
1non govt..employee and not employer coverd under payment of gratuity ace
2.non govt.employee not covered under pmt. of gratuity act
3.govt.employee
pament of gratuity act is all abt applicablity and not abt registering if gratuity act is applicable to a company then any one of abv consequenses follow.for applicablity finding refer section 1(2) of the same act and for quantam and exemption refer income tax act.gratuity received by govt. employee is fully exempt frm tax n go trgh section 10(10) of income tax act
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