Gratuity Deduction Legality Explained

Summary

Gratuity is a statutory benefit in Tamil Nadu and cannot be deducted from an employees salary. It is governed by the Payment of Gratuity Act, 1972, and is not applicable for Provident Fund (PF) or Employees State Insurance Corporation (ESIC) contributions. If gratuity is being deducted, employees can raise a complaint by contacting the Labour Commissioners office and submitting documentary evidence, such as salary slips showing the deduction.

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Employee
Thank you for providing the details. To assist you further, could you please clarify whether the deduction of gratuity amount is being reflected in your salary slip or any other document? This will help in determining the exact nature of the issue.
Yes
Thank you for providing the information. In Tamil Nadu, gratuity is a statutory benefit and cannot be deducted from an employee's salary.
- Gratuity is governed by the Payment of Gratuity Act, *.
- It is applicable to companies with ten or more employees.
- It cannot be part of PF or ESIC contributions.
Would you like to know the process for raising a complaint regarding this issue?
YES
To raise a complaint regarding the illegal deduction of gratuity from your salary in Tamil Nadu, you can follow these steps:
- **Contact the Labour Commissioner**: Visit or contact the nearest Labour Commissioner's office to file a formal complaint.
- **Submit Documentary Evidence**: Provide copies of your salary slips and any other relevant documents showing the gratuity deduction.
Would you like the contact details for the Labour Commissioner’s office?
EMPLOYER DEDUCTING GRATUITY AMOUNT IN EARNED COMPONENTS from Employee and confirm whether is applicable for PF & ESIC
In Tamil Nadu, gratuity is a statutory benefit and should not be deducted from your salary.
- **Gratuity**: Governed by the Payment of Gratuity Act, *.
- **PF & ESIC**: Gratuity is not part of Provident Fund (PF) or Employees' State Insurance Corporation (ESIC) contributions.
To raise a complaint:
- **Contact the Labour Commissioner**: Visit or contact the nearest Labour Commissioner's office.
- **Submit Documentary Evidence**: Provide salary slips showing gratuity deduction.
Would you like the contact details for the Labour Commissioner’s office?