Dinesh DivekarDear member,
You may follow the following process:
a) Obtain a letter of resignation from all the employees of the company that will be closed.
b) Pay the gratuity and other dues to the employees as applicable.
c) You need to protect the seniority of the employees for whom the gratuity is not applicable. For them, include a paragraph in the appointment letter that for the calculation of gratuity and promotion purposes, their service will be counted from the date of joining of the former company. Otherwise, for all other matters, the date of joining of the present company will be counted.
Your query was on gratuity only. However, the employees could claim their seniority for promotion purposes also. Hence I recommend the inclusion of the clause on promotion and foreclosing matter now itself.
From India, Bangalore
How long you were running the first company. Closing company A is your decision and for that employee's should not be penalised.
So you should transfer their services to Company B. You should not force employees for resignation which would lead to forfeiture of benefits.
Being same group company with same Proprietor legally they are eligible for all benefits.
You can issue transfer from Company A to B and in that letter you can add the following :
Subsequent to this Transfer for the purpose of Gratuity calculation your date of joining with company A will be considered.
Also what will be the fate of accrued leaves? You may encash the EL or PL balance for eligible employees.
From India, Madras
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