Am I Entitled to Gratuity After Working in Two Companies of the Same Business Group?

I work in a group company of a big business house. They transferred me from one company to another after I had completed 3 years in the same. Now I have completed another 4 years in the new company, and I intend to resign. I have asked for the gratuity from my employer and am curious to know if it is legitimately due to me.

Hello, as you know, gratuity is a benefit payable under the Payment of Gratuity Act 1972. Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. However, gratuity is paid only to employees who complete 5 or more years with the company.

Gratuity Eligibility Requirements
Gratuity is payable if a company has 10 or more employees. If the group is the same and your current tenure is 5 or more years, then there's no problem; you are definitely eligible to get the gratuity benefit. Regarding the same, you can communicate with your HR for better transparency.

The liability to pay gratuity as per the Payment of Gratuity Act, 1972, lies with the establishment where the termination of service occurs. Therefore, the liability rests solely on the current employer. If the query specifies that continuous service in this establishment is limited to 4 years, the eligibility to receive gratuity does not apply, and the current employer is not liable. However, if you were transferred from one company to another with your entitlements protected and the gratuity amount transferred from the old company to the new one, then a valid claim can be made.

Dear Rahul, If you had not resigned from the first company and you have the transfer letter with you, then there is no need to worry. Generally, in any group of companies, HR will transfer all leaves, service, advances, etc., to your new company within the same group. Please check your transfer letter and speak with your HR for further assistance.

Regards,
Jayendra