Understanding Gratuity Entitlement During Company Transition: Legal Insights

Short Intro: Satyaranjan Sahu, Sr. QA Engineer, Bangalore, India

I have one query. I am an employee in one company, let's call it A, for the past 3 years. I have been deputed to a client's location, referred to as B, where I am currently working. There exists a service level agreement between companies A and B. This agreement is now coming to an end, and neither A nor B is interested in extending it. In the midst of this recession, company A is suggesting that I join company B, and company B is also offering me the opportunity to join them.

I have decided to join company B. Now, what will happen to my Gratuity with company A for the 3 years that I have worked there? I understand that in order to receive that money, I need to complete 5 years with company A. However, I am not leaving A intentionally, nor am I being laid off by A. Therefore, is it legal for me to demand my gratuity money from company A? What are the chances of actually receiving that money?

Dear,

Legally, you are not entitled to get gratuity. A minimum of 5 years of service is required, regardless of the reason for your departure from the organization.

Thank you.
J.S. Malik

One has to serve an organization for a minimum of 5 years continuously to be eligible for gratuity. I agree with Mr. Malik. You are not eligible for gratuity as you are on the rolls of a different company technically.

Regards,
Amit

Dear Satya,

As per your queries, I agree with Mr. Mallik. I mean to say that if an employee has completed 5 years in the same organization, then he/she would be entitled to gratuity. Hence, you are not eligible for the same.

Thank you all for the information. Again, I am not the only one; we have a team of 12. By any chance, will company A consider refunding our gratuity? :sad: For the sake of 12 employees!!