Hi all,
I need clarification on Gratuity liability. If an employee works in a company for about 3 years and then switches to another company. Upon joining the new company, the employee transfers his PF account and continues working for the current employer for the next 4 years. If the employee decides to resign without transferring the PF funds to the new employer, is the current employer liable for gratuity? Can the employer ignore gratuity based on the 4 years of employment with them, even though the employee's total experience is 7 years (3+4 years)? If the gratuity is ignored, what are the criteria for an employee to be eligible for gratuity?
Regards,
srv
srv_ratnam08@yahoo.co.in
From India, Madras
Acknowledge(0)
Amend(0)
I need clarification on Gratuity liability. If an employee works in a company for about 3 years and then switches to another company. Upon joining the new company, the employee transfers his PF account and continues working for the current employer for the next 4 years. If the employee decides to resign without transferring the PF funds to the new employer, is the current employer liable for gratuity? Can the employer ignore gratuity based on the 4 years of employment with them, even though the employee's total experience is 7 years (3+4 years)? If the gratuity is ignored, what are the criteria for an employee to be eligible for gratuity?
Regards,
srv
srv_ratnam08@yahoo.co.in
From India, Madras
Acknowledge(0)Amend(0)
Gratuity Eligibility Criteria
Gratuity is paid to an employee upon the completion of 5 years of continuous service in a single company. This applies in cases of resignation, superannuation, death, or disablement due to accident or disease.
Regards
From India, Mumbai
Acknowledge(0)Amend(0)
24Gratuity is paid to an employee upon the completion of 5 years of continuous service in a single company. This applies in cases of resignation, superannuation, death, or disablement due to accident or disease.
Regards
From India, Mumbai
Acknowledge(0)Amend(0)
Hi all, I need clarification on Gratuity liability. If an employee works in a company for about 3 years and then switches to another company, transferring his PF account to the new employer, and continues working for the current employer for the next 4 years before resigning without transferring the PF fund to the new employer, is the current employer liable for gratuity? Can the employer ignore gratuity by considering only the 4 years of employment with them, even though the employee's total experience is 7 years (3 years in the previous company and 4 years in the current one)?
Eligibility for Gratuity
If the employer can ignore gratuity, why? What are the criteria for an employee to be eligible for gratuity?
Regarding the PF amount, it will be either kept with EPFO or with an exempted PF Trust under the control of EPFO. In any case, there is no transfer of PF from one employer to another, so it cannot be associated with Gratuity. For gratuity, a minimum of 5 years of service with one employer is required.
Regards, srv
[Email Removed For Privacy Reasons]
From India, Bangalore
Acknowledge(0)Amend(0)
Eligibility for Gratuity
If the employer can ignore gratuity, why? What are the criteria for an employee to be eligible for gratuity?
Regarding the PF amount, it will be either kept with EPFO or with an exempted PF Trust under the control of EPFO. In any case, there is no transfer of PF from one employer to another, so it cannot be associated with Gratuity. For gratuity, a minimum of 5 years of service with one employer is required.
Regards, srv
[Email Removed For Privacy Reasons]
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F