Payment Of Gratuity - Partnership Firm

phanse.neha
Dear All,
I have a query regardig the paymet of Gratuity. Is it mandatory for a company to pay gratuity wherein an employee completed a tenure of 5 years whereas the company got registered only in 2008 and prior to that was like a partnership firm.
We have two cases where the employees have joined in 2005 and have left in 2011 and the company denied to pay Gratuity to them stating the above mentioned reasons. In this case is it mandatory to pay Gratuity to these employees?
Thanks & Regards
Neha
bhardwaj_ch1
If the employee was transferred then its continued service render so gratuity is applicable and if
at the time of detachment from partnership,Full and Final settlement was made for those employees then (company ID number newly issued and job also made new employed) gratuity not applicable if resigned before 5yrs of job.
phanse.neha
There was no transfer / full & final settlement done at the time of detachment nor any kind of documentation done so as mentioned above I understand that the Gratuity has to be paid since they have completed a tenure of 5 years and whether the company was a partnership firm/registered the company cannot deny payment of Gratuity.
Kindly confirm.
bhardwaj_ch1
Pls see his personal file also to get to know his employment as fresh employee after detachment.
Yes, when f&f was not done means its considered as continued service and gratuity is payable.
saiconsult
Ms.Neha
Going by the details of your psot, your understanding is correct about payment of gartuity.
B.Saikumar
Hr & Labour Law advsior
Mumbai
nareshmurthyaca@gmail.com
What are the views of our experts on the following:
1) The partnership Firm and the company are two different legal entities. Has the firm is converted to Pvt Ltd Co U/s 565 of the companies Act.. ?
2) Did the employee did the new offer / employment agreement after the legal entity was formed ?
Does these issues matter ?
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