Brand 'A' is in to hospitality sector business and Manages for a fee, hotels owned by other owners in different cities of India and have about 15 hotels under its management across the country.
The brand employ persons on key posts of General Manager and Finance Manager. After training, these persons are sent on deputation to units managed by the brand. During deputation, the salary is paid by the units where the person is posted on deputation for their tenure at particular location. This is done for two purposes. One is employee gets salary within stipulated statutory time period. Second is to over come the menance of GST applicable on reimbursement of expenses.
The brand has policy of transferring such persons from one location to other location generally in a period of every three to four years. So during life time of employment the key persons are moved from one location to other location during their tenure of employment.
If any of such employee resign from the services of the brand say after 10 years, then question is who shall clear the full and final settlement of the resigned employee? It is the principal employer or the employer which whom the employer was working last just before resignation.
S.No. Station From To Tenure
1 Delhi 01.04.2015 31.12.2018 3 Years 9 Months
2 Jaipur 01.01.2018 31.03.2021 3 Years 9 Months
3 Jodhpur 01.04.2021 31.05.2025 4 Years 2 Months
The employee has render his services for about 3 to 4 years at each destination. Therefore the unit owners says that since the employee has not completed 5 years of continuous service at its location, therefore gratuity is not payable by the unit and whether scenario changes if the employee has completed 5 years of service at any of the location/s.
.
Request Hon'ble HR experts to suggest the possible solution/s so that unit owner or resigning employee need not resort to legal proceeding of any type against each other.
Thanks and Regards
Jawaharlal Moondra
+91 9829 028 028
+912 912 777 777
jawaharlalmoondra@hotmail.com
From India, Jodhpur
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33The brand employ persons on key posts of General Manager and Finance Manager. After training, these persons are sent on deputation to units managed by the brand. During deputation, the salary is paid by the units where the person is posted on deputation for their tenure at particular location. This is done for two purposes. One is employee gets salary within stipulated statutory time period. Second is to over come the menance of GST applicable on reimbursement of expenses.
The brand has policy of transferring such persons from one location to other location generally in a period of every three to four years. So during life time of employment the key persons are moved from one location to other location during their tenure of employment.
If any of such employee resign from the services of the brand say after 10 years, then question is who shall clear the full and final settlement of the resigned employee? It is the principal employer or the employer which whom the employer was working last just before resignation.
S.No. Station From To Tenure
1 Delhi 01.04.2015 31.12.2018 3 Years 9 Months
2 Jaipur 01.01.2018 31.03.2021 3 Years 9 Months
3 Jodhpur 01.04.2021 31.05.2025 4 Years 2 Months
The employee has render his services for about 3 to 4 years at each destination. Therefore the unit owners says that since the employee has not completed 5 years of continuous service at its location, therefore gratuity is not payable by the unit and whether scenario changes if the employee has completed 5 years of service at any of the location/s.
.
Request Hon'ble HR experts to suggest the possible solution/s so that unit owner or resigning employee need not resort to legal proceeding of any type against each other.
Thanks and Regards
Jawaharlal Moondra
+91 9829 028 028
+912 912 777 777
jawaharlalmoondra@hotmail.com
From India, Jodhpur
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In the scenario described, the responsibility for settling the full and final dues of an employee on deputation after resignation would typically fall on the last employer the individual worked for before resigning. However, the specifics of this situation may vary based on the employment contract, company policies, and relevant labor laws.
To address the concerns raised by unit owners regarding gratuity payments based on continuous service at a particular location, it's essential to consider the legal requirements outlined in the Payment of Gratuity Act, 1972. According to this act, an employee is eligible for gratuity after completing five years of continuous service with the same employer. If an employee completes five years at any one location, they may be entitled to gratuity based on their overall tenure with the organization.
To prevent potential legal disputes between unit owners and resigning employees, it is advisable for Brand 'A' to establish clear policies and guidelines regarding the settlement of full and final dues, including gratuity payments. These policies should align with the relevant labor laws and ensure transparency in the process.
Furthermore, conducting regular reviews of employment contracts, updating policies to reflect legal requirements, and providing training to HR personnel and unit owners on labor laws can help mitigate risks and ensure compliance with regulations. Open communication channels between employees, unit owners, and the HR department are also crucial to address any concerns or issues related to the settlement of dues effectively.
From India, Gurugram
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To address the concerns raised by unit owners regarding gratuity payments based on continuous service at a particular location, it's essential to consider the legal requirements outlined in the Payment of Gratuity Act, 1972. According to this act, an employee is eligible for gratuity after completing five years of continuous service with the same employer. If an employee completes five years at any one location, they may be entitled to gratuity based on their overall tenure with the organization.
To prevent potential legal disputes between unit owners and resigning employees, it is advisable for Brand 'A' to establish clear policies and guidelines regarding the settlement of full and final dues, including gratuity payments. These policies should align with the relevant labor laws and ensure transparency in the process.
Furthermore, conducting regular reviews of employment contracts, updating policies to reflect legal requirements, and providing training to HR personnel and unit owners on labor laws can help mitigate risks and ensure compliance with regulations. Open communication channels between employees, unit owners, and the HR department are also crucial to address any concerns or issues related to the settlement of dues effectively.
From India, Gurugram
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Full n final settlement.doc