Service Period of Company A may not be considered for Gratuity unless there is documentary evidence to prove that the period served in Company A will be considered for gratuity for all those who have been reappointed in the new company B from Company A.
It thus means that Proper procedure of transfer and compensation has to be documented in employee personal records and company records too.
From India, Vadodara
365It thus means that Proper procedure of transfer and compensation has to be documented in employee personal records and company records too.
From India, Vadodara
Section 25FF in The Industrial Disputes Act, 1947
25FF. 4 Compensation to workmen in case of transfer of undertakings.- Where the ownership or management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to that undertaking to a new employer, every workman who has been in continuous service for not less than one year in that undertaking immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of section 25F, as if the workman had been retrenched: Provided that nothing in this section shall apply to a workman in any case where there has been a change of employers by reason of the transfer, if--
(a) the service of the workman has not been interrupted by such transfer;
(b) the terms and conditions of service applicable to the workman after such transfer are not in any way less favourable to the workman than those applicable to him immediately before the transfer; and
(c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.
Querist needs to give further details to give an answer.
If management is doing such transfers to avoid gravity or other dues then law will be favourable to employee.
From India, Pune
25FF. 4 Compensation to workmen in case of transfer of undertakings.- Where the ownership or management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to that undertaking to a new employer, every workman who has been in continuous service for not less than one year in that undertaking immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of section 25F, as if the workman had been retrenched: Provided that nothing in this section shall apply to a workman in any case where there has been a change of employers by reason of the transfer, if--
(a) the service of the workman has not been interrupted by such transfer;
(b) the terms and conditions of service applicable to the workman after such transfer are not in any way less favourable to the workman than those applicable to him immediately before the transfer; and
(c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.
Querist needs to give further details to give an answer.
If management is doing such transfers to avoid gravity or other dues then law will be favourable to employee.
From India, Pune
Yes Sir, The section 25FF is applicable provided that such notices should have been issued.That is what I meant by writing that the the relevant procedure should have been followed and documented to ensure the welfare of the employee in question.
Thanks for sharing the in detail frame of this issue Sir
From India, Vadodara
Thanks for sharing the in detail frame of this issue Sir
From India, Vadodara
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
