Transferred Within the Same Company: Am I Eligible for Gratuity with Two PF Numbers?

Hi, I joined my current organization in May 2018 with position A in City A. In 2022, I applied for an IJP and got transferred to City B with position B since June 2022.

Now, in City A, I had a separate PF account number. In City B, I now have a separate PF account number. I have completed 5 years in this organization.

Eligibility for Gratuity

Am I eligible for gratuity if I resign now? Will I get gratuity in my FnF once I resign?

Hi, If both companies are the same (branches) or sister concerns, they should consider your total service period as continuity of service and should consider you for gratuity. I hope you have been issued a transfer order and not a fresh appointment order.

However, as you claim separate PF numbers for companies A and B, it appears they are separate entities under one employer. Your request for gratuity can still be considered by your employer as they are group companies.

I did receive an IJT letter.

Lateral Movement

Both are different locations under the same organization.

Below is the letter I received during my transfer:

Subject: Lateral Movement

Dear _,

We are pleased to inform you that you have been laterally transitioned to Team " " with effect from June 24, 2022. Your designation has been changed from "A" to "B". All other terms and conditions of your employment with the company remain unchanged. Please note that you will be under probation for a period of 6 months and will be confirmed for the respective position of "B" post a successful review. We would like to take this opportunity to wish you all the very best for the future. Looking forward to a long and fruitful association with XYZ India Pvt. Ltd. family.

Internal Job Transfers and Probation Periods

Any internal job transfers should not require a probation period, and there is no need for confirmation of employment as you are already a confirmed employee. IJT is just a position and location change; your EPF number should also remain the same. They mentioned that all employment terms and conditions will remain the same. As it is only a transfer within the organization, your employment tenure will continue, and there won’t be any impact on gratuity.

Merely because there was a separate PF number assigned will not deprive you of gratuity. You are eligible to receive gratuity, reckoning continuous service from 2018.

Thank you for your responses.

Transfer Letter from Location A

While transferring, this is the letter I received from Location A:

Date: June 17, 2022

To Whomsoever It May Concern,

This is to certify that Mr. _ was employed with XYZ India Pvt. Ltd, Mumbai from May 2018 to June 2022. His last designation at XYZ Pvt. Ltd. was "position A." During his tenure, he has proven himself to be worthy, hardworking, and sincere.

Further to his request for a transfer from City A to City B Office, he is being relieved from the official duties of Position A at City A Office with effect from the closing hours of June 2022. He is being transferred to XYZ Pvt. Ltd, City B.

We wish him all the best for his future and assure our constant support.

Since I got transferred in the middle of the month, I also received an FnF calculation from the City A office, which included the calculation of the 15 days I worked in the City A office.

I am confused about whether I will be eligible for gratuity.

Hi, To reinstate the same group of companies, they should consider service continuity.

Service Continuity Letter

The letter is a bit perplexing. It would be better to obtain a service continuity letter from Company A stating that "for the purpose of Gratuity calculation, your joining date with Company _______ will be considered."

Transfer Letter Concerns

The transfer letter is technically not proper. It should be addressed to the employee instead of "To whom it may concern." Moreover, it has been mentioned that as per the request of the employee, he has been transferred, which indicates that the transfer order is at the request of the employee, and the employer has not initiated the transfer. It is also not mentioned that all other terms and conditions of employment will remain unaltered.

Gratuity Eligibility

If both organizations have different identities (different balance sheets, etc.), the organization may refuse to pay gratuity. If it is the same organization for all practical purposes, the employee should receive gratuity.

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