Dear All,
I have a query regarding the payment of Gratuity. Is it mandatory for a company to pay gratuity when an employee completes a tenure of 5 years, even if the company was registered only in 2008 and prior to that operated as a partnership firm?
We have two cases where employees joined in 2005 and left in 2011, and the company denied paying Gratuity to them citing the aforementioned reasons. In this scenario, is it obligatory to pay Gratuity to these employees?
Thanks & Regards,
Neha
From India, Pune
Acknowledge(0)
Amend(0)
2I have a query regarding the payment of Gratuity. Is it mandatory for a company to pay gratuity when an employee completes a tenure of 5 years, even if the company was registered only in 2008 and prior to that operated as a partnership firm?
We have two cases where employees joined in 2005 and left in 2011, and the company denied paying Gratuity to them citing the aforementioned reasons. In this scenario, is it obligatory to pay Gratuity to these employees?
Thanks & Regards,
Neha
From India, Pune
Acknowledge(0)Amend(0)
If the employee was transferred, then its continued service renders gratuity applicable. If at the time of detachment from partnership, full and final settlement was made for those employees, then gratuity is not applicable if resigned before 5 years of employment. (Company ID number newly issued, and job also made new employed).
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
There was no transfer/full and final settlement done at the time of detachment, nor any kind of documentation done. So as mentioned above, I understand that the Gratuity has to be paid since they have completed a tenure of 5 years. Whether the company was a partnership firm or registered, the company cannot deny payment of Gratuity. Kindly confirm.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Pls see his personal file also to get to know his employment as fresh employee after detachment. Yes, when f&f was not done means its considered as continued service and gratuity is payable.
From India, Ahmadabad
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
Ms.Neha Going by the details of your psot, your understanding is correct about payment of gartuity. B.Saikumar Hr & Labour Law advsior Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
What are the views of our experts on the following:
1) The partnership firm and the company are two different legal entities. Has the firm been converted to a Pvt Ltd Co under Section 565 of the Companies Act?
2) Did the employee receive the new offer or employment agreement after the legal entity was formed? Do these issues matter?
From Australia
Acknowledge(0)Amend(0)
1) The partnership firm and the company are two different legal entities. Has the firm been converted to a Pvt Ltd Co under Section 565 of the Companies Act?
2) Did the employee receive the new offer or employment agreement after the legal entity was formed? Do these issues matter?
From Australia
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc