Gratuity settlement

Arun (Querist) 26 November 2014 This query is : Resolved
Dear Experts,

Kindly clarify me on the below,

Our company Business orders and Employees alone taken over by another company and they are saying the fresh employment letter will be released with the condition that the Gratuity and otherleave balances will be continued.( As if they are not settling the employees now)

Kindly let me know,
1. Will this be treated as break in service
2. And if the new company come back and say that we are not eligible for Gratuity since the offer letter issued only now.

Kindly advice.

Thanks in Advance.

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Isaac Gabriel (Expert) 27 November 2014
It amounts to continuity in serviceIf the offer/new appointment letter refers to these things there may not be problem.

Jayashree Hariharan (Expert) 27 November 2014
since it is a takeover, it is continuity. if you have more doubts, try to get info as to the settlement points between the two companies, however i dont think you would be able to do so.

Guest (Expert) 27 November 2014
If the fresh letter of appointment contains such clause about taking over of liability of your past service, you need not worry. That ensures continuity of your service, as amatter of take over of business and employees by the new company on existing terms.

Dr J C Vashista (Expert) 28 November 2014
I agree with the experts advise to some extent since it is very important to see the service terms and conditions of the employees in the offer letter issued by taking over company, which shall contain the term regarding continuity the service rendered by employees of outgoing company to be treated as continue or not. While acquisition some companies do not accept the employees of previous company and outgoing company has to settle with its employees before final settlement/exit.