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Rama mohan Acharya (Manager HR(Legal))     25 September 2010

transfer of Propertionate Gratuity

A person having worked for Govt. India  for about 3 years joined a central PSU. can his proportionate gratuity be transferred to the CPSU from GOI organisation? In either of the answer kindly indicate the relevant provision/ rules.


 4 Replies

Isaac Gabriel (Advocate)     25 September 2010

A mi nimum service of five years is needed to get Gratuity as per as per section 4 (1) of the Gratuity Act 1972

murali (asst manager)     03 April 2012

better seek clarification through RTI act  to labour commissioner,new delhi who is the incharge of gratuity issues. he will be able to verify through the issue

Kumar Doab (FIN)     04 April 2012

Mr. Gabriel and Mr. Murali has given valuable advice.Kindly follow it.

If the employee obtained permission/NOC from previous employer the terminal benefits should not get forfeited.

If the current PSU has the provision of accepting proportionate gratuity then it shall.

However the GOI establishment rules have to be referred to. Are these rules available? If it deems the case as having retired then continous service of 5 years is not rendered.

Is the establishment maintaining studied silence? Is it not replying to RTI applications also. Some senior person in HR, personnel, admin, accounts may be able to help.

Another option is to rake up the isue with Controlling authority of gratuity.

murali (asst manager)     18 July 2013

 yes transfer of gratuity should be done between two PSU's irrespective ,no of years of contribution.

the minimum service of 5years should not be invoked in this case,already DPE has categorically explained this issue. Refer O.M. No 2(29)/75/BPE(WC) DT 23.6.1988. please contact me on if you need any further assistance.

all the best.


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