Changing Jobs Between PSUs: Should Gratuity Be Paid Directly or Transferred?

One employee of a CPSU has joined another PSU after resignation. Kindly let me know whether the gratuity payable to him by the previous employer is to be paid directly to him or if it is to be transferred to his new employer. Also, share any statutory provisions on this.

Please let me know if you need any further assistance.

Gratuity will not be transferred to his new employer. If a company has deposited an amount towards the Gratuity fund in the LIC or in any bank where the company has its account, after submitting the claim form to the LIC or any bank, then the gratuity amount will be transferred first to the company account, and from there, it will be transferred to the individual's account to ensure proper accountability.

I know somebody's experience with transferring gratuity from one CPSU to another CPSU. According to the calculation (clubbing both services), he was supposed to receive Rs. 8.5 lakh. However, he only received Rs. 3.5 lakh because the ceiling limit on gratuity at that time was Rs. 3.5 lakh.

Hence, it would be advisable not to transfer the gratuity but to avail it separately.

Regards,
Abbas. P. S.