We are working in a pvt ltd co., dealing stock brooking business in karnataka. No.of employees is 4. We are working for nearly 20 years and at no point of time no.of employees have been more than 10. The management has now sold the co., and the new management is offering continuity in service, but both the old management or the new management is refusing to pay/ compensate us for the no.of years of service that we had already out in. There is no PF or any other benefits for us. We would like to know whether we are legible for any terminal benefits.

From India, Bangalore
Since the total no of employees has been less than 10 for the last several years, Labour enactments having certain minimum numerical srtength of labour for applicability like the Payment of Gratuity Act,1972 will not be applicable to your establishment as long as this condition persists.So, as of now, normal termination of employment like retirement on superannuation, resignation, dieing in harness, you are not eligible for any terminal benefit.
From India, Salem
Hello, For all these benefits like PF, Medical, Gratuity, bonus etc the employee strength has to be at least 20. However I advise you to please read the offer/appt letter if u have. Hope it helps!
From India, Delhi
Dear Friend,
If you are already working in a organization from past 20 years and No. of employees in organization never reached beyond 10, you are not at all eligible for any type of benefits like ESI / PF / Gratuity. Although if any benefits are defined in your offer letter, you can ask your previous employer for that.
The only point is, if your new Employer is allowing you to continue your service why are asking for any type of compensation from any of your employer. and what type of compensation you are asking for. As far as my knowledge Compensation can be asked only at the time of Termination of job, that is also with some Terms and Condition.
Seniors please correct me if i am wrong.
Tanay Singh Kulshreshtha
HR Executive

From India, Bhopal
As per sec 25 FF of the ID Act,the above employees are entitled for retrenchment compensation (when the new employer intend to retrench or close) from the new employer on the basis that their service has been continuous and has not been interrupted by that transfer.In other words his past services are protected as far as ID Act is concerned.
Varghese Mathew

From India, Thiruvananthapuram
Respected Mathew Sir,
Thanks for sharing that new information with us.
According to the point you described above the conclusion is that they already got the compensation in the form of their continuous service.
Please Correct if i am wrong.
Tanay Singh Kulshreshtha
HR Executive

From India, Bhopal
There is another dimension here. Following points may require considetation:
1. Whether the new company will have strength of 20 or more after joining of these four?
2. What do they mean by continuity of service? Will they reckon past service for all intents and purposes?
3. is the new company covered under various welfare legislations like EPF, ESI, etc.
4. Will the service conditions improve after joining the new company?

From India, Mumbai
Sir, our contention is that when the old management has sold the huge premium, are we the employees who have contributed to the growth of the co., all these years are eligible for any share. Just because our numbers are less than 10, can we cheated in this manner. Doesn't principles of natural justice demands that our interests are also looked after.
From India, Bangalore
It seems that you expect compensation as a partner in the business which you are not. You talk abt cheating which is not reflected as they offered continuity in service. You talk abt natural justice which they will abide as per provisions of relevant laws subject applicability.
Of late the trend is to cut the flab and change of management is the apt opportunity for them. But they are liberal. Thank them. No law can save you for yr expectations. Think long term and act. Don't fall to gullible third parties promises.
Best of luck.

From India, Mumbai
Dear friend,
I can very well understand your anguish about going home empty-handed after long years of continuous service in the organization for want of entitlement to any terminal benefit in the normal cessation of your employment.But it is too late. You ought to have prevailed upon your previous management for making appropriate provision of voluntary nature like EPF, Gratuity and such a move is not forbidden under any law. Atleast, you could have jointly raised such a demand before the change of management, which in turn might have triggered some action in this regard making the vendor and buyer to provide for some benefit to the employees in the transfer deed in the form of some retiral compensation in addition to mere paper extension of your services with continuity.

From India, Salem

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™