Compensation for loosing gratuity
Shruti Pandey
(Querist) 26 July 2012
This query is : Resolved
Hi,
I have been working in this company since past 4.3 years. Now the company has decided to wind up with the exisiting name and to start fresh with a new name.Hence, we have been asked to put-up resignation and will get appointment letter across the table.Company is giving us ex-gratia as compensation to loosing our gratuity( calculation for the same is on "gross" instead of "basic".And will hire us on the same CTC and designation as in the previous company. We have been asked to resign mentioning personal reason as the reason and to request to waive off notice period.
Just want to enquire is everything done in a fair way?
Guest
(Expert) 27 July 2012
Gratuity is payable to eligible employees subject to completion of continuous period of five years in the said organisation.In your case , you do not fulfill that condition.Moreover , after winding up of the existing company and formation of a new company, the new company becomes a completly separe entity. That's why, they are issuing a fresh appointment letter to you.Therefore, you have no other alternative but accept their terms.Legally you have no remedy in the matter ,unless the new company is formed by transfer of assets and liablities of the old company and they agree to maintain your continuity of service.In the later case, no gratuity shall be payable to you now.However, they are bound to pay for the notice period in accordance with the terms of engagement,if any, in the former case.
RAJU O.F.,
(Expert) 27 July 2012
In this case, you don't have much choice. We do not know the reason for the winding up of the company and to commence in a different name. Presume that the advice to resign for personal reasons was oral and hence no evidence to confirm re-appointment. However, as the company is winding up you may try your luck by accepting the offer as mentioned by the company and receive the ex-gratia payment.
