Policy

1. Purpose

At [Company Name], we recognize and appreciate the hard work and dedication of our employees. Our Gratuity Policy is designed to provide a financial benefit to employees upon their departure from the company, reflecting our commitment to their long-term well-being and acknowledging their contributions. This policy aims to ensure fairness and clarity regarding gratuity entitlements, creating a supportive environment as employees transition from our organization.

2. Objectives

2.1. Provide Financial Security

To offer a financial benefit that supports employees during their transition out of the company, contributing to their long-term financial stability.

2.2. Recognize Contributions

To acknowledge and reward the valuable contributions of employees throughout their tenure at [Company Name].

2.3. Ensure Fairness

To establish a clear and equitable framework for calculating and distributing gratuity, ensuring all eligible employees are treated fairly.

3. Policy Details

3.1. Eligibility Criteria

• Employees are eligible for gratuity if they have completed at least five years of continuous service with [Company Name].
• Eligibility is determined based on full-time employment status. Part-time or temporary employees are not eligible.

3.2. Calculation of Gratuity

• Gratuity is calculated based on the employee’s last drawn salary and the length of service.
• The formula for calculating gratuity is:
• Gratuity = Last Drawn Salary×15/30​×Number of Years of Service
• Here "15" represents the number of days' salary per year of service, and "30" represents the number of days in a month.

3.3. Payment Process

• Gratuity payments will be processed within [number] weeks following the employee’s departure from the company.
• The payment will be made via direct bank transfer or as otherwise specified in the employee’s final settlement.

3.4. Conditions for Forfeiture

• Gratuity may be forfeited if the employee resigns or is terminated for misconduct or breach of company policies.
• Specific conditions under which gratuity may be forfeited will be outlined in the employee’s contract and are in compliance with local regulations.

3.5. Tax Implications

• Gratuity payments may be subject to taxation according to applicable laws. Employees are advised to consult with a tax professional to understand the tax implications of their gratuity.

3.6. Review and Dispute Resolution

• Employees have the right to review their gratuity calculations and address any discrepancies. They should contact the HR department within [number] days of receiving their gratuity payment for any concerns.
• Disputes related to gratuity payments will be handled with fairness and transparency in accordance with company policies and legal requirements.

4. Conclusion

At [Company Name], our Gratuity Policy reflects our commitment to supporting our employees as they move on from our organization. By providing a structured and fair gratuity benefit, we aim to honor the dedication and contributions of our team members. We encourage employees to familiarize themselves with this policy and reach out to HR with any questions or concerns. Together, we strive to ensure that every employee’s transition is handled with respect and care.