Hi All, Could anyone please help me with the gratuity? I have served for a company for 2 years and 6 months and then the company was sold to another company and I have served the new company for 3 years more. So in total, I have served 5 years and 6 months even though the process were same the company title is different. When I leave the company, am I eligible to receive gratuity?

Labour Law & Hr Consultant
Partner - Risk Management


When a Company is transferred from one to another by means of sale, If the transferor does not settle the accounts of the employees of the company as on the date of sale/transfer and in the absence of any mention about the employees, the buyer/the transferee becomes the successor-in-interest for the liabilities of the transferor. Therefore, the employees continued in the service of the company after its transfer are entitled to continuity of service and all attendent benefits arising out of it. Hence the poster is entitled to gratuity for both the services rendered cumulatively under the transferor and the transferee when he leaves the company.
From India, Salem

I hope you are aware of the difference between sale of the company and sale of the business.

Sale of the company means that the shares of a set of shareholders are sold to another set of shareholders. The company being an independent judicial entity, continues to remain the same, even if the name is subsequently changed.

In that case, you will be eligible to gratuity.

From India, Mumbai

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