Hi everyone, I have a situation where I was employed with a company for 4.2 yrs ..Now the company transferred me to their sister concern due to project issues and I worked there for close to 1.5 yrs.Now I have quit the company and joined another group.But while doing full and final settlement , the company has not released gratuity stating that I have not completed 5 yrs in a particular establishment Now , both group companies have same holding company , however are registered differently and while generating Form 16 have separate TAN as well ... Can anyone please help me in this case as I am feeling perplexed what to do in this case ...
From India, Bengaluru
Labour Law & Hr Consultant
Doctor Siva Global Hr
Ceo-usd Hr Solutions

Dear Niketan,

Inter-Company transfer of employees at the behest of employers among their group companies ( " Group Company " itself is a misnomer for there is no such a term defined under the Companies Act for each and every company registered under the Act is a separate legal entity ) is an issue warranting more vigilance on the part of the transferred employees. Such employees should ascertain before transfer whether they are transferred with continuity of service, pay protection, seniority etc., and whether there is provision for such inter-company transfers in the standing orders or service regulations and whether the transfer is effected with the consent of the transferee company. If they get no answer in writing or the transfer order is devoid of such particulars, they should not accept the transfer. In such a situation, one cannot say anything on the issue raised by you without going through the transfer orders, standing orders or your letter of appointment issued originally by the transferor company.

Still you can do one thing. Send your notice of claim in form I to both the companies. If they fail to respond or disown the liability to gratuity on the grounds already indicated in your post, file a joint-claim for gratuity against both the companies before the Controlling Authority for the area where you worked last.

From India, Salem
Dear Colleague,
Very well guided by our Colleague Umakanthan Sir. This is a learning how Employer should give clarity in the transfer letter to the Employee and what are the continual benefits including Service Continuity etc has to be spelled with clarity in writing. Trusting the letter of the employer, the employee work wherever they are posted but they should be given all statutory benefits without any deprivation.

This is a learning to the employees on how they should get clarity when such transfer letters are issued to clearly check out what are the benefits that is affected and what clarity given in the Transfer letter and is there any mention on continuity of service despite transfer from company A to B.

Kindly refer your Transfer letter and check if any clause is there mentioning Continuity of service upon transfer. If it is mentioned in the letter, then you may send your Gratuity claim notice to Company B. If there is no mention in the letter then send your notice to both Company A & B jointly and raise case before Controlling Authority under Payment of Gratuity Act for suitable remedy

Take Care
Doctor Siva Global HR
Tamil Nadu

From India, Chennai

Thanks a lot ...
The 1st company had given in writing that gratuity would be transferred to the second company ..also the pf account number did not change while getting transferred ...so this case would be a case of continued employment and hence gratuity should be paid when 5 yrs are completed ...pls give your views ..

From India, Bengaluru
Dear Colleague,
As per given information, it is continuous service only. You may very well approach Company B for Gratuity. If denied send claim to both A & B company and seek direct remedy or legal remedy as suggested

Take Care,
Doctor Siva Global HR
Tamil Nadu

From India, Chennai
If there is in writing from 1st organization that your gratuity payment will be taken care/paid by the 2nd company, then to my opinion you are eligible for Gratuity. From your 1st post it appears that the 2nd organization has refused to pay you gratuity. Please write a mail to both the organization stating the fact and enclosing the letter issued by the 1st organization to pay your gratuity.

Even after the above, if gratuity is not paid - send the specific Form claiming gratuity to both the organization with a copy to appropriate authority under the Payment of Gratuity Act to redress your grievances.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

USD HR Solutions – To Strive towards excellence with effort and integrity

From India, New Delhi

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