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karunanidhi sahu   04 May 2023

Gratuity on transfer to overseas branch office on deputation

Please refer below the relevant points and guide what is the solution for employee and employer:

> Foreign deputation period exceeds 5 years.

> employee was paid salary both in India and also in overseas.

> While resigning / transfer back to India, foreign country has gratuity payment obligation.

> whether in foreign country as per that country regulation, gratuity should be paid in overseas irrespective of their continuous employment with Co in India after return to India.


Please inform relevant caselaws or examples in which case gratuity is paid in overseas salary in overseras country though he will continue to work in India in same co.




 2 Replies

T. Kalaiselvan, Advocate (Advocate)     04 May 2023

If you are eligible for gratuity payment for the deputation period in the overseas country, then your grautity payment will be made to you on resignation directly to you wihtout the parent company involved in it.

The parent company will settle your other full and final settlements on resignation as per the terms of employment

Dr J C Vashista (Advocate)     05 May 2023

Employees on deputation do not enjoy separate gratutity for the period of deputation (domestic or abroad), however, it may differ from one department/ orgainsation to another which depends upon its policy on the subject. 

It is better to consult  a local prudent lawyer for proper advise and necessary proceedings

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