One of my friends served a Karnataka state PSU (State Public Sector Undertaking) and retired after 33 years of service as a Technical Manager in the Production unit of the company. During his tenure, he was temporarily reassigned to a different state PSU for 7 months before returning to his parent company as the assignment had concluded.
Upon his return, he was placed on compulsory leave for one year and three months due to the production halt caused by losses at the factory. Subsequently, he took the initiative to secure a deputation to another state PSU through proper channels and served there for an additional one year and three months before reaching the retirement age of 60.
On the final working day of his retirement month, he followed his parent company's advice and officially retired from his parent company a few months ago. Given the break in service of one year and three months due to the compulsory leave period, there is a query regarding how his gratuity should be calculated.
Facts:
1. His total service period amounts to 32 years and 9 months, inclusive of the one year and three months compulsory leave.
2. The last month's salary was provided by the deputing company, although he formally returned to and reported at his parent company on the concluding working day.
3. His gratuity contributions are regularly remitted to the parent company by the deputing organization.
Please provide guidance on how his gratuity should be computed.
From India, Pune
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Upon his return, he was placed on compulsory leave for one year and three months due to the production halt caused by losses at the factory. Subsequently, he took the initiative to secure a deputation to another state PSU through proper channels and served there for an additional one year and three months before reaching the retirement age of 60.
On the final working day of his retirement month, he followed his parent company's advice and officially retired from his parent company a few months ago. Given the break in service of one year and three months due to the compulsory leave period, there is a query regarding how his gratuity should be calculated.
Facts:
1. His total service period amounts to 32 years and 9 months, inclusive of the one year and three months compulsory leave.
2. The last month's salary was provided by the deputing company, although he formally returned to and reported at his parent company on the concluding working day.
3. His gratuity contributions are regularly remitted to the parent company by the deputing organization.
Please provide guidance on how his gratuity should be computed.
From India, Pune
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Gratuity Rules in the Parent Organization
There may be gratuity rules in the parent organization; if so, they have to be followed. His gratuity shall be paid by the parent organization depending on the notional last pay due to him in the parent organization. It would not include the deputation allowance he was drawing elsewhere.
From India, Mumbai
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1593There may be gratuity rules in the parent organization; if so, they have to be followed. His gratuity shall be paid by the parent organization depending on the notional last pay due to him in the parent organization. It would not include the deputation allowance he was drawing elsewhere.
From India, Mumbai
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