Dear Tittli,
All along my answers to your questions were with an undercurrent of abundant caution not to sow the seeds of distrust in the minds of the employees whose loyalty to the employer is great and unquestionable and spoil their otherwise smooth relationship with the new management in which the erstwhile proprietor happens to be a partner too. That's why I chose to answer in a very generalized way. The facts that though the employees are numbering to 100 and the merger being certain and well thought-out by the family running both the companies, there was not even a formal discussion with them on this matter and one fine morning they were suddenly in the employment of a new firm indicate something messy utilizing the blind loyalty of the employees and their virtual lack of representation. This could be the outcome of some wrong advice to the management or their come-what-may tendency. And your latest post informing the forum about the new management's version of non-eligibility of proprietoryship firm's employees to gratuity reveals that the entire operation of the en masse transfer of the services of the employees of the defunct firm without any authentication either by the transferor or the transferree is a schematic exercise to circumvent the provisions of Section 25FF of the Industrial Disputes Act,1947 and the Payment of Gratuity Act,1972.
Sec.25FF stipulates that every workman with not less than one year service in an undertaking shall be paid compensation as per Sec.25F as if he has been retrenched when the ownership or the management of the undertaking is transferred either by agreement or operation of Law. So, Tittli, you are all eligible to retrenchment compensation on merger @ 15 days wages last-drawn, apart from gratuity.
However, this will not be applicable when - (1) the service of the workmen has not been interrupted by such transfer. (2) the service conditions after transfer are not less favourable AND (3) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.
When the employees transferred are kept in the dark about the terms of transfer, how can they stake their claims either for retrenchment compensation or gratuity now or later against the Partnership Firm?
Don't believe everything told by the management in blind faith and loyalty and become a simpleton.
Better, first raise a formal issue with the management through some efficient and sincere Trade Unionist and if not fruitful, then raise a dispute under Sec.2k of the Industrial Disputes Act,1947.