Umakanthan53
Labour Law & Hr Consultant
Hrlohia@123
Hr Manager

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If an employee works for a particular company of a group for 8 years and then after the complete shut down of that company he joins another company under the same group for which he worked earlier and works for 4 years. Then please let me know if he is elligible for gratuity in the second company as he has worked in the earlier sister concern for 8 years or he does not fulfill the elligibility criteria for gratuity.? If employer want to pay him gratuity money then how it will be calculated and after paying before 4 years in the present company do the employer will break the rule of gratuity?
There is no such classification of companies incorporated under the Companies Act,1956 or Act of 2013 such as group company, sister company etc. These are common or colloquial names used only informally within the circles. Every company incorporated under the Act is a distinct and separate legal entity unless there is a common balance sheet with reciprocity of operations.THEREFORE, it is for the employees whose services shuffled among such " group companies" or "sister concerns" to be aware of the subsistence of any contract facilitating inter-company transfers and whether such contract has provision for transfer with continuity of previous service rendered in the transferor company and the liability to pay the whole terminal benefits by the transferee company.
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