R B Yadav
Advocate & Management Consultant On Labour
Working As Assistant General Manager (personnel)
Service As Dgm-hr/legal
[email protected]
Sr Manager Hr & Administration
+2 Others

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Hello Friends,
I have a query WRT gratuity payment.
What is the rule on the payment of gratuity for an employee who had been transferred within a group company and now if he decides to quit the group after serving for 3 years and 2 years with parent company?
Is he entitled for gratuity or will it be considered as a new company?

From India, Mumbai
Dear Mr Govind,
I agree with your view but my efforts to convince MGMT has been futile as they say that the companies that they have been transfered does not state of being a sister or group company, So effectively they would not be entitled for gratuity.
Is there any workaround to prove to the MGMT that they are wrong?

From India, Mumbai
Dear Friend,
If you have transferred the employee with your sister concern, you are liable to pay the gratuity, where you are maintaining the gratuity registers? Need more clarification you can call me

From India, Hyderabad
dear lakshminarayaan,
one company name Mr.A and second company name is Mr.AB, the problem is raju is the employee of Mr.A company, he is transfer to Mr.AB company. both company managements are same. his working 3y in Mr.A and 4y in Mr.AB. my question is Raju is eligible for claim the gratuity amount for Mr AB company? and Mr AB company total services is 5y.
so please explain the above case study.
M.Chaitanya Krishna

From India, Nellore
I think Mr chaitany has potrayed the case very well. The transfer letter has been issued by the HR Director and states that the other terms and conditions remain the same.
But the total work period of the employee in the parent company stands as 2 years and in the second company it is 3 plus years. Now the MGMT is not willing to pay gratuity stating that the period starts from the transfer to second company and not from the beginning.
Please advice and share any law which clarifies the same under gratuity scheme!!!!

From India, Mumbai
Thank you Sir, Appreciate your efforts.I shall await your feedback and quote from the legal book so that the employees Interest can be taken care of correctly. Regards, Saikumar S
From India, Mumbai
Dear Sai,
I am enclosing two attachments which will suffice your needs. Those are the two judgements given by Madras High Court, wherein the meaning of Employee has been elaborated. You may show it to your management and get their doubts cleared and help the needy person.
P. Vathiraj

From India

Attached Files
File Type: pdf gratuity_madras_hc_judgement.pdf (1.55 MB, 168 views)
File Type: pdf K._Natarajan_vs_The_Tamil_Nadu_Civil_Supplies_..._on_25_July,_2011.PDF (98.2 KB, 123 views)

Dear Mr Vaithiraj, Thank you for the feedback.I would need to speak to you for further clarification. Can i have your contact details please? Regards,
From India, Mumbai
Dear Sai, My mobile no. is 9585 333 344. I am presently staying in Chennai. For any clarification, please feel free to call me. Whatever I know, I will update you. Regards, P. Vathiraj
From India
With reference to your query regarding payment of gratuity for the service rendered to the group companies, if the management of the companies are ignoring your legal dues you have an option to file a claim under Payment of Gratuity Act and keeping in mind to make both the group company as respondents. Obviously these group companies will toe down and come on foot. You are eligible for gratuity to the tune of Rs. 15 days salary per year. The calculation will be done as per provisions of the gratuity Act i.e your basic salary X 15/26 x servicing years.
R B Yadav

From India, Mumbai

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