Hi, The business unit in which I am working has been acquired by another company. In my current company, the gratuity eligibility period is 3 years. I have completed 2 years and 10 months in this organization, and by the time the acquisition is complete, it will be 2 years 11 months. Will I be eligible for gratuity from the current employer? I read on a forum that in the case of a 5-year policy, 4 years and 8 months is considered for eligibility. Does this case apply to a 3-year policy as well? Any information would be appreciated.
Thank you.
From India, Bangalore
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Thank you.
From India, Bangalore
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Gratuity Eligibility and Acquisition
As per the Payment of Gratuity Act, the minimum service period to become eligible for gratuity is 5 years in separation or resignation matters. However, in the case of death or permanent disability, this does not apply. I haven't seen any provision to pay the gratuity on account of an acquisition. As far as acquisition is concerned, normally the acquisition agreement covers the existing manpower resources as well. Are you referring to the Superannuation Fund of your existing company?
From India, Jaipur
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9As per the Payment of Gratuity Act, the minimum service period to become eligible for gratuity is 5 years in separation or resignation matters. However, in the case of death or permanent disability, this does not apply. I haven't seen any provision to pay the gratuity on account of an acquisition. As far as acquisition is concerned, normally the acquisition agreement covers the existing manpower resources as well. Are you referring to the Superannuation Fund of your existing company?
From India, Jaipur
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