Payment of Gratuity why cant it be transfered to the new employer like PF


Payment of Gratuity why cant it be transfered to the new employer like PF
The Issue
Company offering gratuity as part of CTC.
CTC stands for, cost to company and every company takes it in a different way.
There are two views:
One, employee become eligible for gratuity only after completion of 5 years so how come company can make it part of employee CTC and what if
employee do not complete 5 years and leave the company before.
Second, as it is liability of employer to pay gratuity to employee in two cases: 1) when employee completes 5 years and 2) in case of death and
disablement irrespective of completion of 5 years hence employee should make it part of CTC especially when employer has taken insurance policy to
cover gratuity liability.
1. Why can't it can be transferred to new employer as like EPF, as this is part of CTC and hard earned money by an employee.
2. If an employee leave an organization before completing 4 years and 240 days of service then where this money goes please clarify.
I have filed RTI No. S-42015/01/2015-SS.II for explanation of above two questions but I have received the same information available under sec 4 (1) of the payment of Gratuity Act 1972.
Request you to please look into it and allow employees to transfer the Gratuity as like PF.

The Issue
Company offering gratuity as part of CTC.
CTC stands for, cost to company and every company takes it in a different way.
There are two views:
One, employee become eligible for gratuity only after completion of 5 years so how come company can make it part of employee CTC and what if
employee do not complete 5 years and leave the company before.
Second, as it is liability of employer to pay gratuity to employee in two cases: 1) when employee completes 5 years and 2) in case of death and
disablement irrespective of completion of 5 years hence employee should make it part of CTC especially when employer has taken insurance policy to
cover gratuity liability.
1. Why can't it can be transferred to new employer as like EPF, as this is part of CTC and hard earned money by an employee.
2. If an employee leave an organization before completing 4 years and 240 days of service then where this money goes please clarify.
I have filed RTI No. S-42015/01/2015-SS.II for explanation of above two questions but I have received the same information available under sec 4 (1) of the payment of Gratuity Act 1972.
Request you to please look into it and allow employees to transfer the Gratuity as like PF.

Petition Closed
Share this petition
Petition created on 2 November 2015