Am I Still Eligible for Gratuity Pay After Being Asked to Resign and Rejoin on the Same Day?

Hi, Employer name: Think and Learn Pvt Ltd (Byjus). Concern: Gratuity Pay

I have worked a total of 5.7 years for the above employer during my tenure. HR asked me to resign and rejoin on the same day. From 26 June 2017 to 25 June 2020, I was working as an operations associate for an offline tuition center. Due to a business decision, the centers have been closed, and I was asked to change departments internally. While doing so, instead of an internal transfer, they asked me to resign and rejoin on the same day to avoid appraisals. Throughout all the years, I have worked more than 240 days, and the one-day gap is artificial. Am I eligible for gratuity pay?

Tenure:
20 June 2017 to 25 June 2020
26 June 2020 to 19 Jan 2023
With one artificial day.

They have paid the full and final settlement (FNF) with leave encashment for the first tenure.

There is an artificial break; it is evident. Since you were paid the FNF settlement at the end of tenure 1, it goes against you. Moreover, there is resignation and a fresh appointment; all these facts go against any claim for gratuity.

Employee Number Continuity
Were you continuing with the same employee number? If so, then there is a fact in your favor.

Hi, thank you for the quick response. The second tenure continued with a different employee ID and the same email address. All I have is a resignation, and onboarding happened on the same day (for reference, I have emails). I am checking if anything can be done with the email.

Hi, I personally feel that you can defend your case very strongly. Resignation on the same day and rejoining also on the same day explicitly prove the move of your employer to evade statutory obligations. Getting relieved and joining on the same day cannot be construed as a break in employment. The only thing against you is that your resignation letter wherein you might have mentioned "on personal grounds you are resigning." However, you can claim that you were advised to resign. Do you have any material evidence for the same? If you are not currently working with the employer, you can apply for Gratuity stating your period of employment. In case of no positive response, you may file a case with the office of the Assistant Commissioner of Labour of your jurisdiction. In your request letter for gratuity, emphasize your stint with the same organization from start to end.

As material evidence, I have attached a relieving letter PDF, onboarding email, and offer letter PDF from the official company email address. I have also included some screenshots. All five years, I worked for more than 240 days, and the one-day gap is an artificial gap. I have sent an email to the employer regarding this issue.

Hi, okay. You can wait for the response. In case of a delay from the employer's side, please follow up and send reminder emails. Keep legal recourse as a last option. Hopefully, they will respond to you.

Artificial breaks in service will not defeat the continuity of service. When fixed-term employees who have completed five years of service with breaks in service after each term are pronounced eligible for gratuity, you are entitled to receive gratuity. You may approach the Controlling Authority. Also, please go through the attached judgments.

In most countries, eligibility for gratuity pay is determined by the length of service with an employer and the terms of the employment contract. If an employee has worked for a certain number of years, they may be eligible for gratuity pay upon leaving their job.

However, a one-day gap in service may impact an employee's eligibility for gratuity pay, depending on the specific terms of their employment contract and the laws of the country they are working in. It's best to check with the relevant authorities or consult with a labor law attorney for a more accurate answer.

Check the eligibility of gratuity: https://hrone.cloud/gratuity/

Dear [Recipient], If a break is not given and your service is carried out in the same premises, then it will be considered as continuous service. Your total employment services will be considered, and you will be eligible for gratuity as per the Gratuity Act.

Dear Bharath Ganapathy, In my opinion, there's no problem; you have a strong point. I would suggest hiring an advocate for the same. Also, mention that the employer had forced you to resign to avoid/forfeit the gratuity amount. Your case is strong, so you can fight. For any assistance, you can communicate with me without any hesitation.

Dear Bharath Ganapathy, in my opinion, there's no problem; you have a strong point. I suggest you hire an advocate for the same. Also, mention that the employer forced resignation to avoid/forfeit the gratuity amount. Your case is strong, so you can fight it. For any assistance, you can communicate with me without any hesitation.

The facts of your case indicate that you will be eligible for gratuity. "Due to a business decision, centers have been closed, and you have been asked to change departments internally." This can be substantiated by the closure of some centers, which is a business decision, and your rejoining on the same day. Please file a claim with the company and await their response. Emails from the company will be helpful in this process. Be aware of typical techniques used to deny gratuity.