cpc

continuous service as per the payment of gratuity act


Company A (a foreign company) appoints a CEO in India through its established parent company. The CEO renders 4 years and 4 months of continuous service. Thereafter Company A opens a subsidiary and all its employees including the CEO resign from parent company and join the subsidiary. The CEO works for another 3 years and 10 months with the subsidiary.

Addition Info 1: There is no actual break in the period of continuous employment and the change from the parent to the subsidiary was only legal change on paper.

Additional info 2: CEO's original appointment letter states his eligibility for gratuity.

Is the CEO eligible to receive gratuity?

 
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