Facing Job Loss After Decades: Am I Eligible for Gratuity and Retrenchment Benefits?

Hello, I have been working with a private limited company since 1981. Our base company A, which I joined in 1981, transferred its rights to company B in 1992. The current company has the same management and site as the original company.

Now, the management has entered into a joint venture and is letting people go. I am the first person from our Mumbai office to be relieved. I was verbally informed to leave by 30th April 2019. Approximately 20 people work in the Mumbai office, and there are over 70 people at the plant located in Gujarat.

Eligibility for Gratuity Benefits

I would appreciate your valuable suggestions on the following:

- Am I eligible for gratuity benefits from 1981 or 1992 (in the current company)?
- Is it based on basic salary or total gross monthly payment?

Eligibility for Retrenchment and Incentives

- In addition to gratuity, am I eligible for retrenchment, VRS, or both?
- Am I entitled to any incentives for the remaining period of my service?

Please provide guidance with relevant calculations to assist me. Kindly advise on the relevant acts and rules.

Thank you.

Retrenchment and Gratuity Entitlements

The management has not offered any VRS. They only provided verbal information on 2nd April 2019 that you will no longer be working with our company (you are relieved) from May 2019, considering a one-month notice period. However, no written letter or confirmation has been given as they are closing down the Mumbai office.

I understand that I am only entitled to retrenchment benefits in such a situation. Could you please provide the calculations and details of the relevant acts and rules?

Legal Action and Gratuity Benefits

Do I need to send a legal notice, or can I initially submit a formal letter not accepting their offer of only gratuity? This must be done before 30th April 2019 or later, if necessary.

Additionally, could I receive gratuity benefits from the first day of my employment in 1981 when the company was first taken over by the current management at the same manufacturing site, or should it be from 1992 when the company name was changed?

Resignation and Leave Entitlements

I have noticed that one by one, the management is asking other staff who joined after 2000 to resign. Could you also advise me on whether I am entitled to my accumulated leave over the years?

Thank you.

Dear Friend,

1. You are eligible for the gratuity benefit as your company has been taken over by another company, so in this case, your employment is considered as a continuation.
2. Gratuity is calculated based on Basic+DA.
3. If your leave policy states so, then you will be eligible for the leave encashment benefit.

Dear Sir, I would like to bring to your attention that I am eligible for the gratuity benefit as a continuation of my service. However, there seems to be a discrepancy in the leave policy as I have been categorized under the management level, resulting in me not receiving leave encashment benefits unlike other employees.

Leave Policy Discrepancy

I have observed that our Mumbai staff is entitled to a total of 30 days of leave per year, whereas our plant in Gujarat offers around 45 to 60 days of total leave (including privilege leave, casual leave, and sick leave). I am inquiring whether it is possible for the Mumbai staff to receive similar benefits to those of the Gujarat staff.

Claiming Leave Encashment and Overtime Pay

Furthermore, I am interested in understanding how I can claim the leave encashment benefit for my entire working period since 1981. Additionally, I would like to inquire about claiming any overtime pay that may be due to me.

Retrenchment Benefits and Relevant Acts

As of now, I am only aware of being entitled to retrenchment benefits under specific circumstances. I would appreciate clarity on the calculations involved, along with the relevant acts and rules that apply in this situation.

Incentives and Formal Notice

Moreover, I would like to know if there are any incentives that I may be eligible for during the remaining four years of my service. Should I provide a formal notice through legal channels or should I start with a written letter expressing my concerns about the current situation of only being offered gratuity?

This communication should be completed before the 30th of April, 2019, or at a later date as deemed suitable, especially considering the verbal notice received from the management about vacancies effective from May 2019. I seek guidance on any possibility of extending the period of work and whether a written request to resign from the job is necessary.

Thank you for your attention to these matters.

Yours sincerely, [Your Name]