Anthony (Manager Administration (external affairs)) 19 June 2015

Gratuity in case of service transfer

Dear Sir / Madam,

I was working with (A) Company Which is an Umbrella Company, (Directors are having different Companies under the Umbrella.) Under the Company Name of (A1) After working one year, Company Director Transfer me to his sister Company, Under the Name of (A2), where he is one of the partners. My service completed 5+ years in A2,

Hence, My question is am i elegible to get Gratuity from A1 + A2 ? or just from A2 only?

I will be Glad if you kindly advice me at your earliest.

With deep regards. Anthony

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2 Replies

Kumar Doab (FIN) 19 June 2015

Transfer and deputation are part of service conditions.

If you did not resign from A1 and have some evidence say transfer/deputation order you can produce it.

As per Payment of Gratuity Act,1972, the employer can provide better terms of Gratuity than offered in Payment of Gratuity Act,1972.

Thus if the Directors want they can provide Gratuity payment for 6 years also.

It shall be better to transact in writing under proper acknowledgment.

BS Kalsi (Business & Management Consultant) 19 June 2015

Dear Anthony,

If you have been transferred to the new company on the same terms and conditions and without being issued a fresh appointment letter,you service will be treated as 'Continuous service' as defined in Section 2A of the payment of Gratuity Act,1972. Your gratuity amount will be calculated taking into consideration the total period spent in Compant A & B.On the contrary, if you have abreak of service in Company A & B then, on resignation, you will get the gratuity from the company where you have rendered continuous service of Five years or more.

BS kalsi