Eligibility for Gratuity in Inter-Company Transfer Scenario
🔍 To determine your eligibility for gratuity, we need to consider the specifics of your employment history and the relevant labor laws in both the United States and India.
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Service Calculation:
1. Your total service duration is 5 years, from 1-SEP-2017 to 31-AUG-2022.
2. The initial two years were served at the company's headquarters in a different country, followed by three years at the Indian subsidiary.
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Eligibility Criteria:
1. In the United States, the standard practice for gratuity eligibility is based on completing a minimum of 5 years of continuous service.
2. However, in India, the Payment of Gratuity Act, 1972, mandates gratuity payment for employees completing 5 years of continuous service.
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Practical Advice:
1. Given your unique situation with an inter-company transfer, it's crucial to consult with HR and legal experts well-versed in both U.S. and Indian labor laws.
2. Request a detailed review of your employment history and the applicability of gratuity regulations in both jurisdictions.
3. Seek clarification on whether the transfer between the headquarters and the Indian subsidiary impacts your gratuity entitlement.
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Action Steps:
1. Collect all relevant employment documents, including offer letters, transfer letters, and employment contracts.
2. Schedule a meeting with HR to discuss your gratuity eligibility and seek guidance on the next steps.
3. If necessary, seek legal advice to ensure your rights are protected under both U.S. and Indian labor laws.
🌐 For further information on gratuity regulations in India, refer to the official
Payment of Gratuity Act, 1972.
By following these steps and seeking expert guidance, you can clarify your gratuity entitlement and ensure a smooth transition as you conclude your employment with the company.