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darshan malwadkar (Student)     10 April 2018

Deputed employees and gratuity

many companies depute employees of their own to subsidiary companies.

say, a company named 'Y' is a subsidiary of a company named 'X'.

now X deputes 5 of its employees to Y.

Y has 6 employees of its own i.e. recruited by it only.

Now, are those 6 employees of Y eligible under Gratuity Act? since total number of officials working in Y is now 11 (6 of its own and 5 deputed by parent company X).



Learning

 2 Replies

Isaac Gabriel (Advocate)     25 August 2019

The gratuity Act stipulates that gratuity should be paid by the lending firm or the prportionate gratuity to be recovered from the deputed firm for the respective employee. So far as the no of employees in the deputed company the deputed employees are to be taken int account while computing the gratuity amount.

Sudhir Kumar, Advocate (Advocate)     06 October 2019

please state facts of the case.


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