Umakanthan53
Labour Law & Hr Consultant
Bijay_majumdar
Freelancer In Hr &indirect Taxes For
Nathrao
Insolvency N Gst Professional
Raj_123
Software Engineer
+3 Others

PRIME SPONSOR - FACTOHR - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Hi Everyone,
I worked in company A from July 2010 and on March 2012 they registered a new company named B and all the employees are got shifted to company B. They give us new offer letter for company B and relieving letter for company A. Now I have resigned from company B (in Nov 2017) and my total tenure in company B was 5.8 years.
So my question is that if management and place is the same then my 20 months tenure in company A, can be considered while calculating the gratuity or my tenure will remains 5.8 years.
Thanks
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
ideally you should receive gratuity. But again need to check your separation system from company A to company B.
Circumstances would have to be examined.
Prima facie from what you have described gratuity is payable by the company.
Employer cannot get away from liability by closing one company and restarting business in another name and re employing same people.
I beg to differ from the views of the two members answered just before me though their views have inherent ethical value. But, legally speaking both the companies are different entities despite the fact of continuity of ownership in any form. As per the post, all the employees including the poster resigned from Company-A in response to the offer of Company-B. Therefore it can not be treated as a transfer of service from one company to another with continuity of service. If at all they have any claim for gratuity against Company-A, it actually depends on the length of continuous service rendered there on the date of their resignation. Regarding the query of the poster who stands resigned as of now from Company-B also, he can stake his claim for gratuity only for the period of his service actually rendered in Company-B and can not club the service rendered in Company-A.
Technically you cannot combine the service in company 'A" with that of company'B' for reasons,explained by Mr.Umakanthan. However ethically, the company can consider it and compensate for the past service as the management is same in the form of 'ex-gratia'.However it is company's discretion.
B.Saikumar
HR & Labour Relations Advisor
Navi Mumbai
""all the employees are got shifted to company B. They give us new offer letter for company B and relieving letter for company A""
Uma sir,
The employee never resigned from Company A.
The employees were shifted to Company B.It looks from the bare facts given that the entire closing of A and opening of B with same business and same staff is a way of evading Gratuity among other unknown reasons.
Facts are inadequate to decide but my opinion i on the assumption stated above.
Yes, Mr.Rao, I do certainly agree that from the very bare facts casually presented by the poster, you perception would also be correct under the provisions of S.25-FF of the Industrial Disputes Act,1947 pertaining to compensation of workmen in case of transfer of undertakings. At times, howsoever educated, our Indian employees in order to keep the going good, are gullible to the manipulative tendencies of their employers. That's why most of us insist that the posters should always furnish complete details of the problem for which they seek solution. Now, it is upto the questioner to respond.
""At times, howsoever educated, our Indian employees in order to keep the going good, are gullible to the manipulative tendencies of their employers.""
The unemployment situation is so bad that employees have to lump it or find alternatives.Employers find it easier to get away and twist things.
Most posters do not furnish full information and also confuse you with multiple contradictory questions/posts.
But still answering these posts to best of ability in fair manner, is learning for all concerned.
Receiving full & final settlement means severing of employer-employee relationship. Gratuity is paid on continuous service of 5 or more years, which you don't have.
If an employee has continuous service in two different companies under the same management (transfered from company A to B), will he eligible for gratuity for the continuous service?
Pls give your reply
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses

Add Reply Start A New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™