How Should I Handle a Gratuity Dispute After Being Transferred Between Companies?

I worked with a Building Materials company in Delhi for 8 years. It is a group operating through a holding (parent) company in Ghaziabad and having its subsidiary in Haryana. I was appointed in 2005 in the subsidiary company and worked with it for 43 months. Thereafter, I was told that they were promoting me and shifting me to the Parent Company payroll. I was reporting to one of the Directors of the Subsidiary Company.

Thereafter, I was told to resign from the subsidiary company and take a fresh appointment in the Parent company. I inquired about the gratuity and was assured that the company would take care of the same. Subsequently, I resigned and was appointed in the Parent company with immediate effect without any break in service. The PF account was also opened fresh.

After serving the Parent company for 54 months, I developed some serious issues with my new boss and resigned from my services. I was informed that given my contribution to the company and the record that I have, co

It seems you could not post your query completely. You can very well claim your gratuity. Gratuity is due to you. I expect other members to contribute on how it should be claimed.

On behalf of all of our members, I have a request: please do not use this forum as a platform for your firm's business advertising. Let's focus on helping the members resolve their problems.

Gratuity Eligibility Concerns

Since Mr. Harsh was asked to resign and obtain a new EPF number before completing the eligible period of service for gratuity, I believe he may not be legally entitled to it. It appears that the management is misleading their employees through verbal assurances. This is not simply a matter of transferring employees within the group companies.

Anyway, best of luck to him if he can convince the CA under the PG Act and secure his gratuity.

First of all, they have played it quite well in a clever manner. Your answer is in your query itself.

1. Thereafter, I was told to resign from the subsidiary company and take a fresh appointment in the Parent company

You broke your service here only. So from the employer's point of view, they are not liable to pay you gratuity.

2. I inquired about the gratuity and was assured that the company will take care of the same

Another blunder. You were assured that your gratuity account is open. What does this assurance mean to you? Have you filled your F form? Have you ever inquired about the gratuity account? Do you have your copy of the receipt? Form F copy of yours? How can you be assured? So here also your stand is quite weak.

3. Now, please check whether you have those gratuity papers, form F, etc. If so, file a case with the Inspectorate of Factories about the gratuity claim.

He will send a notice to the employer. Then, if the employer can prove they are not liable to pay, then it ends there. But if they couldn't, then they will have to pay the gratuity. Mainly the collector will do the valuation then. But first and foremost, write a letter addressing the CIF.

Dear Premkumar ji, I once again read the posting by Harsh ji very carefully and stand by what I said earlier. To my understanding, there is no break in the services of Harsh with two group companies under the same management. He was made to resign from one company and join another one in one of the group companies under the same management, that too without a break. In my view, it is immaterial whether the management agrees for continuity or not and also the opening of a new PF account.

Other members are requested to express their views.

My query was incomplete due to some technical error on the site, I guess. Please find below my complete query:

Employment History and Transition

I worked with a Building Materials company in Delhi for 8 years. It is a group operating through a holding (parent) company in Ghaziabad and having its subsidiary in Haryana. I was appointed in 2005 in the subsidiary company and worked with it for 43 months. Thereafter, I was told that they were promoting me and shifting me to the Parent Company payroll. I was reporting to one of the Directors of the Subsidiary Company.

Thereafter, I was told to resign from the subsidiary company and take a fresh appointment in the Parent company. I inquired about the gratuity and was assured that the company would take care of the same. Thereafter, I resigned and was appointed in the Parent company with immediate effect without any break in service. The PF account was also opened fresh. After serving the Parent company for 54 months, I developed some serious issues with my new position.

On behalf of all our members, I have a request: please do not make this forum a platform for your firm's business advertising. Help the members to resolve their problems.

Gratuity Eligibility Concern

Since Mr. Harsh was made to resign and opt for a new EPF number before completing the eligible period of service for gratuity, I feel he will not be legally eligible. The management seems to be misleading their employees through oral assurances. It is not a question of transferring employees within the Group Companies. Anyway, best of luck if he can convince the CA under the PG Act and get gratuity.

Hello All, this was just an awareness message deleted now. I have seen many similar messages on CiteHR. I will not post if members don't like it. I have contributed to this site since 2006.

Good Luck,
Joseph