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I work in a group company of a big business house, they transferred me from one company to another after I had completed 3 years in the same. Now I have completed another 4 years in the new company and now I intend to resign.

I have asked for the Gratuity from my employer, just curious to know that is the same legitimately due to me ?

From India, Delhi
Labour Law & Ir.
Jayendra Varma
Senior Manager Hr
Management Consultancy


As you know that gratuity is a benefit that is payable under the Payment of Gratuity Act 1972. Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. But, gratuity is paid only to employees who complete 5 or more years with the company.
Gratuity is payable if a company has 10 or more employees:
If group is same and your current tenure is 5 or more years then there's no problem you are definitely eligible to get Gratuity benefit. Regarding same you can communicate with your HR for better translucent.


The liability to pay gratuity as per the PGA 1972 is on the establishment where the termination of service happens. So, the liability is only on the present employer. Since it is stated in the query the continuous service in this establishment is limited to 4 years, the eligibility to receive gratuity is not there and the liability will not be there for the current employer. But it is also stated that you were transferred from one company to another, was it done protecting your entitlements and the gratuity amount was transferred from the old company to the new company, then a valid claim can lie.
From India, Mumbai
jayendra varma

Dear Rahul,

If you had not resigned from first company and you are having transfer letter with you then no need to worry, generally in any group companies HR will transfer all leaves, service, advances, etc to your new company of the same group.

Check your transfer letter & speak with your HR for the same.


From India, Hyderabad
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