Gratuity Transfer Dilemma: What Happens When Your Company Gets Acquired?

manish-rana1

Dear Seniors,

I would like to understand if the gratuity can be transferred in case a certain business within an organization is acquired by a different company to form a new company.

umakanthan53

It is to be specifically mentioned in the acquisition deed between the buyer and seller. Otherwise, the affected employees are entitled to retrenchment compensation as well as gratuity from the seller. Please refer to sec. 25-FF of the ID Act, 1947.

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