Hello All, Currently I am working in a private company for past 10 years now I understand that the company is being sold to another private concern which was just established two years before in India. My enquiry is whether if New Company will pay gratuity if I leave once takeover of New Private company.

Please clarify.
12th July 2017 From India, Chennai

Dear Gopinath,
Normally, the transfer of an undertaking with employees by means of a sale from one management to another management will not affect the continuity of service and other service conditions of the employees. However, it depends upon the terms and conditions of the sale deed. In the absence of any specific conditions, the buyer becomes the successor-in-interest and liable to pay gratuity to the employees for their entire service including the previous one on their termination of employment after the sale/take-over.
13th July 2017 From India, Salem
Umakanthan.M
Additional Commissioner of Labour (RTD)
09443178999 - 09442174709
Normally in a takeover bid the companies if the Company is taking over a Company with the employees on the rolls, there are two possibilities;
1. They will either takeover on as is whereas basis, in this case one of the conditions is that the brights & benefits of the existing employees is protected and the taking over company informs existing employees to this effect.
2. They will take over without employee, in this situation the old company pays the dues including gratuity.
3. There is third possibility also, the taking over company takes employees with past dues cleared by old company, in this situation, old employees become new employee and eligibility starts afresh in the new company.

You can take your decision of leaving once you officially know as to what are the terms & conditions merger.

Warm Regards

Bharat Gera
HR Consultant
16th July 2017 From India, Thane
Hi,

Your question is: whether if New Company will pay gratuity if I leave once takeover of New Private company.?

Gratuity does not affect on basis of new or old company. what ever the gratuity amount will be the new company will pay Company enhancement, company merge, company takeover does not affect gratuity because that person who will get gratuity has served the company.


Thanks
Dev
16th July 2017 From India, Bengaluru
Regards:
DeV
 

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