Am I Eligible for Retrenchment Benefits or Gratuity After Resigning? Seeking Advice

Eligibility for Retrenchment Benefits and Gratuity

I worked for a company for 2 years and 8 months, and then rejoined after a year, working for another 3 years and 5 months. Due to downsizing, they asked us to resign in the first week of November 2013 and agreed to pay the whole month's salary, which I accepted and signed on the resignation letter. Recently, I read a post about Retrenchment Benefits, so I thought I would seek advice from professionals here.

Would I be eligible for Retrenchment Benefits or Gratuity? Please let me know as I was not aware of these things until I read about them on citeHR.

Regards,
Sanji-Paul

Dear Sanji-Paul, I hope you have received a settlement for the initial period of 2 years and 8 months. If you have, then you cannot claim anything now. However, if you did not receive any benefits during that initial period, please approach your HR as they can provide you with the necessary details.

Questions About Your Employment Tenure

During your second service of 3+ years, you received Notice Pay. I am curious about the 1-year gap. Did you receive proper relieving for the first tenure? If not, how were you selected for the second time?

There are several questions that come to mind for the followers. Could you provide more details about the first tenure? This could include relieving details, compensation details, the 1-year gap, details about the second tenure, and confirmation on whether the second tenure is considered a continuous service or a fresh entry.

By sharing the above details, our members can provide you with the correct answer to your query.

Thank you very much, Mr. Bhaskar, for your immediate response. For the first two years and eight months, there was no settlement done. I resigned, and all I received from the company was my PF. They rehired me based on my previous performance and my good self, as the GM was a good person. I rejoined as a new employee in a different department and worked there for three years and five months.

I would like to know more about the policies and procedures.

Resignation and Employee Benefits

Normally, in resignation cases, employees cannot claim anything. Instead, they have to pay the notice pay to the company. The only benefit you can receive is the PF which you have. Since you have rejoined as a new employee, the old period will not be considered for the calculation of any full and final benefits.

Since you have resigned, you will not receive retrenchment compensation. Additionally, since you do not have 5 years of continuous service, you won't receive gratuity either.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Dear Paul,

As a prudent measure, you should have preferred the retrenchment option rather than the resignation offer. What made you not think along these lines? If you had chosen retrenchment, there was a possibility of receiving retrenchment compensation since you were not eligible for gratuity for not completing the required continuous service of 5 years. Perhaps now you could request them to reconsider by combining the past service of 2.8 years and 3.5 years. Together, you might be eligible for gratuity on the basis that you followed their suggestion of resignation as a goodwill gesture rather than a demand. There is nothing wrong in trying; if you get it, nothing like it. Some firms are lenient in relaxing certain conditions during downsizing to assist outgoing personnel. Best wishes to you.

Regards