Costing Engineer
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I have been working in a company since May 2007 but in April 2010 they have shifted some of their employees to one of their sister concern and now I want to leave this company after completing my 5 years. Am I applicable to get the Gratuity. Staff remained the same, Directors are same, even most of us are doing work for both the companies and both the companies are running under one roof. Please help me.
Dear Priya
The facts(though limited) you have furnished that both are sister concerns, existing under one roof, owned by same directors and employees are working for both the concerns and there is hiting of employees from one concern to another, inicate that both establisments constitute one establishment and therefore the service in another sister concern shall be included tocompute five year period.therefore you will be eligibel for gratuity.
HR &Labour Law advisor

Yes Priya, gratuity is applicable. As my learned friend Mr. Saikumar has indicated, that the companies fall under same establishment, it is one company, more of that the company itself has changed your branch of working. The company is linked with the main company, so gratuity applies.
But, it doesn't apply if the companies are entirely different but fall under same umbrella brand, like UB breweries and Kingfisher Airlines ........
If the company are linked together and entire hold themselves as different establishments/entities, they will be treated as different companies. (Unless customized by the company through its policy, very rare exception...)

Thank you sirs...n one more thing do the notice period also gets count in completing the 5 years....like the day u put resignation has any role....like if 6 days before completing ur 5 years u have put the papers...then.....
Dear Sister Priya, As per Gratuity act ORGANIZATION should consider until they releave you from the Job.therefore Notice period also must count in Gratuity. Thanking You, Venkat.
Dear Priya,
The Notice period will also count while calculating the eligibility period under the Gratuity Act. One more thing please note that you will be eligible for gratuity after completing 4 years and 8 months of your continuous service, which shall count the time you spent in the service of the sister concern of the company. 4 years and 8 months is counted as 5 years of continuous service. so if you have completed this time or more you are already eligible.

Yes.As kamal Kant and hrvenkat explained, notice period too shall count for calculating the continuous service of five years or more since the employee-employer relationship continues till the expiry of the notice period or date of relieving.
HR &Labour Law Advisor

Dear Priya,
This is no problem. Please contact labour commissioner of your area. They are authority under the act. They will make sure that you get your Gratuity amount with ease and also you get other necessary things like your experience letter your full and final or any other documents required from your employer. Don't worry which is rightfully yours nobody can take it from you.

Ok Thanks Kamal Sir....
I am in doubt they may ask me the question like you were not there in the same company....but as i mentioned firstly only the name of the company has changed else everything was same.....
Presently I am drawing 14200 as my basic salary ...according to which I am liable to get some 40961 Rs....is the calculation is correct.

Just one question....Did they take any resignation letter from you before they asked you to work for the new company.
If they had taken any such letter, and issued a new letter giving you some break of few days, it may be difficult to fight. Some groups have this habit of taking a resignation letter, settle all accounts including leave encashment beore thay ask an employee to takean assignment in their sister company
Otherwise you have a good chance and you can file a petition before Payment of Gratuity Authority

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