I have been working in a company since May 2007, but in April 2010, they shifted some of their employees to one of their sister concerns. Now, I want to leave this company after completing my 5 years. Am I eligible to receive Gratuity? The staff remained the same, Directors are the same, and most of us are working for both companies. Both companies are running under one roof. Please help me.
From India, Delhi
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From India, Delhi
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Dear Priya,
The facts (though limited) you have furnished indicate that both are sister concerns existing under one roof, owned by the same directors, and employees are working for both concerns. Additionally, there is movement of employees from one concern to another, suggesting that both establishments constitute one entity. Therefore, the service in another sister concern shall be included to compute the five-year period. Consequently, you will be eligible for gratuity.
B. Saikumar HR & Labour Law Advisor Mumbai
From India, Mumbai
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1931The facts (though limited) you have furnished indicate that both are sister concerns existing under one roof, owned by the same directors, and employees are working for both concerns. Additionally, there is movement of employees from one concern to another, suggesting that both establishments constitute one entity. Therefore, the service in another sister concern shall be included to compute the five-year period. Consequently, you will be eligible for gratuity.
B. Saikumar HR & Labour Law Advisor Mumbai
From India, Mumbai
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Yes, Priya, gratuity is applicable. As my learned friend Mr. Saikumar has indicated, the companies fall under the same establishment; it is one company. Furthermore, the company itself has changed your branch of working. The company is linked with the main company, so gratuity applies.
However, it doesn't apply if the companies are entirely different but fall under the same umbrella brand, like UB Breweries and Kingfisher Airlines.
If the companies are linked together and hold themselves as different establishments/entities, they will be treated as different companies. Unless customized by the company through its policy, which is a very rare exception.
From India, Bangalore
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However, it doesn't apply if the companies are entirely different but fall under the same umbrella brand, like UB Breweries and Kingfisher Airlines.
If the companies are linked together and hold themselves as different establishments/entities, they will be treated as different companies. Unless customized by the company through its policy, which is a very rare exception.
From India, Bangalore
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(Fact Checked)-[B]Response[/B]: Your understanding is mostly correct. However, in the given scenario, gratuity is applicable even if the companies are linked but operate as distinct entities under the same umbrella. (1 Acknowledge point)
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Thank you, sirs. One more thing, does the notice period also count towards completing the 5 years? For example, does the day you submit your resignation play a role? For instance, if you submit your resignation 6 days before completing your 5 years, then...
From India, Delhi
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From India, Delhi
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Dear Sister Priya, As per Gratuity act ORGANIZATION should consider until they releave you from the Job.therefore Notice period also must count in Gratuity. Thanking You, Venkat.
From India, Hyderabad
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From India, Hyderabad
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[QUOTE=priyameghwal;1854021]
Dear Priya,
The notice period will also count when calculating the eligibility period under the Gratuity Act. Please note that you will be eligible for gratuity after completing 4 years and 8 months of continuous service, which includes the time spent in the service of the sister concern of the company. 4 years and 8 months are considered as 5 years of continuous service. Therefore, if you have completed this time or more, you are already eligible.
From India, New Delhi
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Dear Priya,
The notice period will also count when calculating the eligibility period under the Gratuity Act. Please note that you will be eligible for gratuity after completing 4 years and 8 months of continuous service, which includes the time spent in the service of the sister concern of the company. 4 years and 8 months are considered as 5 years of continuous service. Therefore, if you have completed this time or more, you are already eligible.
From India, New Delhi
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(Fact Checked)-The user reply is correct. The Notice period is counted in completing the 5 years for gratuity eligibility. Completing 4 years and 8 months is considered as 5 years of continuous service. (1 Acknowledge point)
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Yes. As Kamal Kant and HR Venkat explained, the notice period also shall count for calculating the continuous service of five years or more, since the employee-employer relationship continues until the expiry of the notice period or the date of relieving.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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(Fact Checked)-[The user's reply is correct. Notice period does count towards calculating continuous service for gratuity eligibility.] (1 Acknowledge point)
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Dear Priya,
This is no problem. Please contact the labor commissioner of your area. They are the authority under the act. They will make sure that you get your Gratuity amount with ease, and also that you receive other necessary things like your experience letter, your full and final settlement, or any other documents required from your employer. Don't worry, what is rightfully yours, nobody can take it from you.
From India, New Delhi
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This is no problem. Please contact the labor commissioner of your area. They are the authority under the act. They will make sure that you get your Gratuity amount with ease, and also that you receive other necessary things like your experience letter, your full and final settlement, or any other documents required from your employer. Don't worry, what is rightfully yours, nobody can take it from you.
From India, New Delhi
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Ok, thanks Kamal Sir.
I am in doubt they may ask me a question like, "You were not there in the same company." However, as I mentioned earlier, only the name of the company has changed; everything else remained the same.
Presently, I am drawing a basic salary of 14200. According to this, I am liable to receive around 40961 Rs. Is the calculation correct?
From India, Delhi
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I am in doubt they may ask me a question like, "You were not there in the same company." However, as I mentioned earlier, only the name of the company has changed; everything else remained the same.
Presently, I am drawing a basic salary of 14200. According to this, I am liable to receive around 40961 Rs. Is the calculation correct?
From India, Delhi
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Just one question... Did they take any resignation letter from you before they asked you to work for the new company? If they had taken any such letter and issued a new letter giving you some break of a few days, it may be difficult to fight. Some groups have this habit of taking a resignation letter, settling all accounts including leave encashment before they ask an employee to take an assignment in their sister company. Otherwise, you have a good chance, and you can file a petition before the Payment of Gratuity Authority.
Sivasankaran
From India, Chennai
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Sivasankaran
From India, Chennai
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Luckily, no, they haven't taken any resignation letters. Only a transfer letter was provided to all the employees whom they shifted, and that too on the letterhead of the previous company. The thing is, I have withdrawn the PF from my last company since they were not transferring the PF to the new company. The details of the PF account of the new company do not appear on the internet at all. In fact, none of the employees who have left the new company have received their PF yet. Either the forms are rejected, or there is no news at all. The HR of the last company instructed us to mention the reason for leaving as "Resigned" in the PF form. Will that create any problems?
From India, Delhi
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From India, Delhi
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(Fact Checked)-[The user's reply is correct. The employee would be eligible for gratuity as the service in the sister concern should be included in the computation of the five-year period based on the fact that both establishments constitute one under the same directors and shared employees.] (1 Acknowledge point)