Employee who got shifted in new firm is entitled to get gratuity with whom (previous employer or new)? - CiteHR
KK!HR
Management Consultancy
Yrshirke
Hr / Ir

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Friends, My company has two director, they are brother too. In 2014 both are got separate with a new company and older one & also divided staff's as per their convenient. Now my question is that; the employee who got shifted in new firm is entitled to get gratuity with whom (previous employer or new), while they have worked for more than 10 yrs in previous company & still working with new firm. If staff claim their gratuity from previous one definitely they will be in loss. Please guide.
Dear Singh ,
Under Companies Act they ,( Directors ) have to give declaration that ,they are taking over liabilities of all types .They have to issue individual letters stating their services are in continuous in nature .Otherwise they have to make F & F of every individual .
Pl check
Regards ,
Y.R.Shirke

Shri Singh: The new company does not owe gratuity with respect to the service rendered in the previous company unless it is so provided in the Articles of Association/Memorandum of Association of the new company.
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