Understanding Gratuity Transfer Between Sister Companies and Employee Benefit Entitlements

Dear All,

After working for about 11 years, I have been transferred to our sister concern for a year now, and since then, my date of joining displays the new date. I would like to know:

a) Whether I can withdraw the gratuity amount now?

b) If I resign, how many years of gratuity will be payable?

Thanks & regards,
Viju

Dear Viju,

a) You can apply for the gratuity in the parent company for 11 years of service. If the two companies are different entities, you have no option to transfer gratuity from one separate entity to another.

b) If you resign from the new company with one year of service, you are not eligible for gratuity.

S. Sethupathy,
Excellent HR Services,
Erode

Kindly check the transfer letter given by the first company. They must have mentioned: "For all your long-term benefits, your earlier date of joining would be considered." If this is not mentioned in the letter, you should check with HR personnel.

Hi Vijay,

"Terms of appointment remains the same" does not mean anything. The transfer letter specifically needs to specify that the date of appointment will be considered from the date of joining of the parent company for all benefits and retirement benefits.

Thank you.