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arun B Aba (Senior Engineer)     16 March 2013

Gratuity

Transfered from a US company to its Indian office after 5 years. If I get terminated or leave the company after an year(which makes total of 6 years in the same company, 5 in US and 1 in India), would I be eligible for Gratuity?



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 3 Replies

Kumar Doab (FIN)     17 March 2013

You have posted that:

--“Transfered from a US company to its Indian office after 5 years.”

If you were employed in India and were issued appointed order by company registered in India and to which Payment of Gratuity Act, 1972 applies you may have a chance.

--“ If I get terminated or leave the company after an year(which makes total of 6 years in the same company, 5 in US and 1 in India), would I be eligible for Gratuity?’

The Payment of Gratuity Act, 1972 is silent on location of the employee.

How was your posting in US effected by the company e.g. by way of transfer/deputation?? Transfer and deputation are part of service conditions.

Or you were made to sign a resignation letter and accept a new appointment order during posting in US?

Did you move to US for business reasons of Employer?

Was there any change in the employer? Were you on duty with same employer?

Was your salary being processed in India? Although your lawyer may opine that Salary was computed in India or Abroad may not make much difference.

Did your company provide any social security benefit to you during your stay in US?

It is felt that India has not signed Social Security Pact with US……

If you were on duty with same employer in US then there should be no effect on regularity of service and you should be eligible.

If your company had issued PF number to you while you were posted in India, you may check whether PF contributions were deposited in you’re a/c while you were in US.

PLS REMEMEBER TO ISSUE A COMMUNICATION IN WRITING  (UNDER PROPER ACKNOLWEDGMENT WITH A COPY TO YOU) ADDRESSED TO GOOD OFFICES OF APPOINTING AUTHORITY, MD THAT COMPONAY MAY DEDUCT EMPLOYEE’S CONTRIBUTION OF  PF AND GRATUITY FOR ALL YEARS OF YOUR SERVICE ABROAD and add the PF contribution of Employer and deposit funds in your PF account. (You may add that you have been requesting in person for it in office.)

If employer has not been deducting and depositing PF (Gratuity: only employer has to deposit) this communication from you shall help you to regularize your PF account and accumulate funds.

You may visit a competent and experienced labor consultant/service lawyer and show all documents including but not limited to standing orders of the company, appointment letter, intra company transfer letter, all documents signed by you before leaving for foreign location, service agreement, expenses incurred by company on sending you abroad, revenue/profits generated by you abroad, social security benefits provided by company to you while abroad, your salary slip/CTC sheet while in India and while abroad, increments granted to you while abroad ( or no increment was awarded), appraisal sheets, appreciation emails/letters/awards/rewards, certificates of commendation etc…..

Ands answer a few questions like whether the company kept your PF, Gratuity, ESIC, Group Insurance, Mediclaim policy, etc in force and regular while you were abroad???

PF dept. has made the system online or you may peruse RTI route.

There are many threads at LCI on Gratuity

Discussion > Labour & Service Law > Gratuity

At the following link:

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.UUXdnkpFZ_4

and on specific points raised by you too. You may find these useful relevant e.g;

Discussion > Labour & Service Law > Gratuity > Gratuity unpaid

At following link:

https://www.lawyersclubindia.com/forum/details.asp?mod_id=67376&offset=1#.UHE68mcWrts

You may find the attachment useful.

prem_sagar_sharma_vs_central_warehousing_corporation

Valuable advice of learned experts/members is sought.


Attached File : 783584515 gratuity for foreign service form7.pdf, 783584515 gratuity for foreign service prem sagar sharma vs central warehousing corporation on 5 may, 1998.pdf downloaded: 135 times

arun B Aba (Senior Engineer)     18 March 2013

My case is different. I work for a US company and has been working in US with that company  for 5 years and paid in US. After that I was Transfered to their Indian Office in India and worked for 1 year in India. If in US, any termination requires them to pay a package. Now that I am back in India, would my 5 years of work in US count towards the 5 year requirement for Indian Grativity rules. As said before, I worked for that US company for 6 years, 5 in US and 1 in India.

Kumar Doab (FIN)     18 March 2013

You may claim severance pay from US Company for tenure in US.

The Payment of Gratuity Act applies to companies registered in India.


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