Dear Friends,
I would require some clarification with regards to the Gratuity, please help on this.
I had joined ABC Pvt Ltd on Febraury 2007, later in April 2011 I has been shifted from ABC Pvt Ltd to XYZ (Firm) under the same management which was done for the purpose of bringing PF under one head. Please let me know am I eligible for claiming Gratuity.
I had been shifted under the same management
I have been working in the same premises
I have been getting PF benefit from April 2011
I have completed 5 years of continuous service
I have been getting salary paid from the same bank account from Febraury 2007
Please help me in knowing regarding the eligibility of the gratuity amount
Arjun M

4th December 2014 From India, Bangalore

Partner - Risk Management
Presently Working As Dy Manager Hr &
Singh Sanjana
Asst. Manager - Hr
Recruitment, Employee Relation, Training
Amarsinh Patil
Asst Manager Hr/admin
+2 Others

yes. As per payment Gratuity Act, you are eligible to received your gratuity.. regards S Rajasekaran
4th December 2014 From India, Madras
If the entity has changed, how can you get sallary from the same bank account ?
The pvt ltd and the firm can not obviously have the same account.
Or did you mean you got the salary TO the same bank account
4th December 2014 From India, Mumbai
Dear Mr. Arjun,
Your message is incomplete. U have not confirmed whether ABC has given you appointment order or not ? If ABC issued appointment order, you are eligible for the payment of gratuity on completion of 5+ years. Co's do change their names for several reasons but employees will be moved and letters must be there for their continuance of service and service rules, which needs to be maintained by the HR Department.
6th December 2014 From India, Hyderabad
Good Morning ,
I appreciate and agree with Sr Subba Rao as i have experienced this transition infact effected one.
Transfer or Transition could take place within the ambit of various concerns but management remains the same only important thing is issuance and acceptance "letter of continued service" .
Labour/PF ask for the issuance and acceptance of "letter of continued service".
Note : If there is a takeover by different management then things change but also depends on negotiations during the takeover.
Warm Regards,
6th December 2014 From India, Mumbai
In the strictest sense of the law, a change in the employer means the period of 5 years starts afresh when he joins a new employer.
The private limited firm and the partnership firm owned by the same shareholders are 2 completely different legal entities and therefore different employers.
So how he was "shifted" makes a difference.
If he was actually shifted, meaning they gave him a letter asking him to work for the firm and confirming the extension of the period, then he will be eligible for gratuity for full period. If they have given a fresh appointment letter, which mentions nothing of the previous employment, then the 5 year period starts from the date of the appointment.
In this case, i understand its not the change in the structure or constitution of the business, but a different entity doing the business.

6th December 2014 From India, Mumbai
What you are saying is not feasible.
Without seeing actual documents, it is not possible to say much, however, looks like you have a good chance of getting support of the authority on gratuity (mist probably labour commissioner)

7th December 2014 From India, Mumbai
Hello everyone,
It is very clearly mentioned in Payment of Gratutiy Act, 1972 that if an employee is being transfer from one sister concern to another or one business unit to another and there is no gap in employment, person will be eligible for PAYMENT OF GRATUITY after completion of 5 years.
Sanju Singh
8th December 2014 From India, Bangalore
Thank you Sanjana Singh,
I am in continuous service under the same management for past eight years however it was due the PF that I was moved to the sister concern. both the organization are at the same premises and both are still in existence.
Request you to let me know the section and clause which deals with the above case.
Thank you all for the information provided
Arjun M
9th December 2014 From India, Bangalore
Dear All,
I am agree with Sanju Singh. Now a days it is general practice to shift an employee to another sister concern unit or branch. It is important to an employee, he is only transfer or full & final settlement. Now PF is universal account no. then it is not evidence of continuous services.
If an employee want to continuous services in that group, then he did not accept full & final settlement.
9th December 2014

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