Jayakanth (Sr Manager) 04 December 2013

Continuity of international service

Dear Sirs,

Not sure why my earlier question did not come up in the forum or does not even show in the "Sent" items. Here's my question.

1. Have been working with an MNC for 8 years 6 months now.
2. Started with them in China and worked for 4 years before I was transferred to the then newly formed India office.
3. Further to the transfer, worked in India for 4 years 6 months and I have again been transferred to Vietnam.
4. My transfer letter did mention that my service from China to India would be considered as one long service and I would be eligible for all past benefits that I had at China and would qualify for benefits per the Indian law.

As I had to move with 4 years 6 months service at India, would this mean that I do not qualify for the Gratuity at India or does all my 8 years 6 months come accountable.

Appreciate your inputs here!

Thanks & Regards,

Jayakanth

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4 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 04 December 2013

you would be eligible to get gratuity only if you have completed a minimum of 5 years of service in the company.You get the gratuity amount at the time of retirement or resignation, provided you have completed at least 5 years of service in the organization.

Sudhir Kumar, Advocate (Advocate) 04 December 2013

nothing more to add

Jayakanth (Sr Manager) 04 December 2013

Thank You Sir for the response.

So, although I have been working in 2 different locations China and India, I still qualify for Gratuity because my total years of service with the organization is 8.5 years. Hope my understanding of your response is correct.

Thanks & Best Regards,

Jayakanth

Kumar Doab (FIN) 05 December 2013

Pls provide some clarifications.

The first appointment is issued by a company registered in India or China and does the appointment order states that you shall be located in China? The salary was processed and disbursed from China or India?

Did the company provide some social security benefit in China?

The Payment of Gratuity Act 1972 (Indian Act) is silent on location. The transfer and deputation are part of service conditions.

To be eligible for Payment of Gratuity as per Payment of Gratuity Act 1972, the employee should have been actually been employed in 5^th year for 190/240 days if the establishment works for 5/6 days in a week.

You have not completed 190/240 days in 5^th year.

The employer can offer superior benefits as compared to the Act to award the long association.

Hence even if your have not completed 190/240 days in 5^th year employer can still award you with Payment of Gratuity.

If the employer is a Chinese company that has employed you in China and has deputed you in India and has agreed to treat the posting at India and Vietnam as uninterrupted can award you with payment of Gratuity as per its prevailing Gratuity Rules and acts pertaining to Payment of Gratuity applicable to it in China.

The quotes from employment terms posted by you indicate fairness by employer.

Hence it should be appropriate to write to concerned personnel in HR and if required to escalate to good offices of appointing authority, MD, Chairman..............etc.