Gratuity Transfer Between Sister Companies: What Happens When Moving from Company A to B?

Respected all,

Kindly guide me, as I have a query related to the transfer of gratuity between two sister companies. If an employee joined Company A in 2015 and has now been transferred to Company B in 2023, what will happen to their gratuity? Does the company have to pay off their gratuity before transferring them to Company B?

Please guide.

As both companies are different entities, you can either clear his dues at Company A, including Gratuity, or issue the employee a letter stating that "for the purpose of Gratuity, his Date of Joining (DOJ) with Company A will be considered," so that once the employee is relieved from Company B, he will receive the Gratuity for the entire period.