Friends,
My company has two directors; they are also brothers. In 2014, both of them separated, with one starting a new company. They also divided the staff according to their convenience. Now, my question is: the employee who shifted to the new firm is entitled to gratuity from whom (the previous employer or the new one), considering they worked for more than 10 years in the previous company and are still working at the new firm. If the staff claims their gratuity from the previous employer, they will undoubtedly incur losses. Please guide.
Thank you.
From India, Patna
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My company has two directors; they are also brothers. In 2014, both of them separated, with one starting a new company. They also divided the staff according to their convenience. Now, my question is: the employee who shifted to the new firm is entitled to gratuity from whom (the previous employer or the new one), considering they worked for more than 10 years in the previous company and are still working at the new firm. If the staff claims their gratuity from the previous employer, they will undoubtedly incur losses. Please guide.
Thank you.
From India, Patna
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Dear Singh,
Under the Companies Act, directors are required to give a declaration that they are taking over liabilities of all types. They must issue individual letters stating that their services are continuous in nature. Otherwise, they will need to make Full and Final settlements for each individual.
Please check.
Regards,
Y.R. Shirke
From India, Mumbai
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33Under the Companies Act, directors are required to give a declaration that they are taking over liabilities of all types. They must issue individual letters stating that their services are continuous in nature. Otherwise, they will need to make Full and Final settlements for each individual.
Please check.
Regards,
Y.R. Shirke
From India, Mumbai
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Shri Singh: The new company does not owe gratuity with respect to the service rendered in the previous company unless it is so provided in the Articles of Association/Memorandum of Association of the new company.
From India, Mumbai
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From India, Mumbai
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Company having two directors, and now both are separated. The company is divided into two firms. In this case, what about gratuity? Some employees transferred to the new company. In this scenario, is an employee's service treated as continuous? How can one transfer gratuity from the old company to the new company?
From India, Sangli
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From India, Sangli
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As per the Payment of Gratuity Act 1972, the employer is required to take a gratuity policy covering their liability. If both the companies have taken gratuity policies, it is easier; otherwise, at this point, realizing gratuity from the erstwhile employer is not so easy a task. Anyhow, check the position. If the policy is not there, then come back to the forum.
From India, Mumbai
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From India, Mumbai
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