Our salary is divided into several parts. In hand, insurance, mediclaim, gratuity etc. are part of our salary. We get a fixed amount every month as a salary and some benefits after leaving the job. We do not know some rules regarding Gratuity to be deducted from our salary. This is the reason that today we have brought detailed information related to it for you.
First, know what is Gratuity?
Gratuity is the part of your salary, which is given to you by the company in exchange for services. It is one of the parts of retirement benefits that are given by the office to the employee when he leaves or terminates the job. There are some rules related to this, about which every employee should know.
Learn the rules related to Gratuity
Finance expert BhanuPratap explains that under the Gratuity Act 1972, if the employee has worked with the company for 4 years i.e. 240 days, then he is entitled to gratuity. The company cannot refuse to give him gratuity in any way.
- Section 4(2) of the Gratuity Act 1972 provides that for every completed year of service in excess of 6 months or part thereof, the employer shall pay gratuity to the employee at the prescribed rates. In the Salem Textile Case, the Madras High Court had also said that it is the right of the employee to ask for gratuity after the completion of 4 years.
- Many times it is said by the company that there was no such mention in your offer letter. Please tell that even if you have worked for 4 years even if you have not given information in the offer letter, then you are entitled to gratuity.
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