Employee Transfers Across Companies: Should Gratuity Benefits Move or Be Settled?

We have three different companies under a single management group. The staff members are frequently transferred to the associate companies. Please let us know, can the benefits of gratuity also be transferred to the associate company, or should it be settled once the employee is transferred?

Hi, Gratuity need not be transferred when each company is a group company.

When an employee gets transferred within one of the group companies, the understanding and arrangements within such a Group Company have to be in place so that such benefits are structured in alignment with the transfers.

When an employee is transferred from Company A to sister concern B, his Date of Joining (DOJ) with Company A should be taken into consideration (for the Gratuity service year calculation) when he resigns from Company B.