Gratuity - Technical Questions - CiteHR
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Smohanrao
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Dear Sir,
myself working in a company since 2007, now company closed it's unit and shifting some other place with new name with new directors.
my question is in that case my gratuity will continue or they discontinued and treat me as a new employee?
kindly guide me with technical clarifcation.
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Dear Mr. Rao, if the company ceases to be in existence, then where is the question of continuous employment with the same employer ? Your employment period ends on the day the company closes.
If it is shifting to a different location with a new name and directors, it would have been as a result of a sell-off by your existing employer (& take-over by a new company/group) (check it out).
If they offer you a position in the new entity, then they should first settle your account with the old entity before they officially take you on their roll's. Accordingly, they should also pay you the applicable gratuity along with your settlement.
Regards,
A.B.
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