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Purushottam P
If I have worked at a company for 7 years, and the organization transitions from a partnership firm to a private limited company after 3.5 years while retaining the same management, but company denied to give me gratuity as per the company I was working in a private limited in only 3.5 years but when a company transitions from partnership to private limited I didn't received any letter regarding this and my employee ID also not changed.
From India, Navi Mumbai
vmlakshminarayanan
929

Hi,

In such scenario the actual DOJ of the employee (@ Partnership firm) should be taken into consideration for the purpose of Gratuity calculation and not the commencement date of Private Limited Company. You are eligible for Gratuity.

From India, Madras
Purushottam P
The company has refused to provide me with gratuity, stating that during my 3.5 years of employment, they transitioned from a partnership firm to a private limited company, but my total experience is 7years.
I never received any formal notification of this transition.

What steps can I take in this situation?

From India, Navi Mumbai
KK!HR
1532

This is a complicated question of facts and law. As per the Companies Act 2013, a company is entirely different from a partnership firm although the persons involved in their management are the same. Legally speaking, the liability of the partnership cannot be vested in the company. It has to be critically examined from the Articles of Association and Memorandum of Association of the company as to whether there exists any provision regarding continuity of operations and liability arising therefrom, for which there is all the possibility. If there is a provision for it, then there is a possibility for upholding the gratuity claim in this regard.
From India, Mumbai
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