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Anonymous
Hi to all of you,

Here is the new issue; kindly provide your suggestions.

One employee has been working at "XYZ Industries" for 3 years. Now, "XYZ Industries" has been closed by the owners and all the workers have been shifted to a new firm, "XYZ_NEW_firm".

In this case, the query is as listed below:

1) Now, one employee has resigned from his job at "XYZ_NEW_firm" after 2 years and claims gratuity, stating that he has completed 5 years (3 years in "XYZ_Industries" + 2 years in "XYZ_NEW_firm").

In this scenario, is it the legal liability of "XYZ_NEW_firm" to pay gratuity to the resigned employee?

Kindly provide a solution.

Best Regards,
Max

From India, New Delhi
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Anonymous
Hello sir, Mr. Umakanthan.

Hi to all of you,

Here is the new issue; kindly provide your suggestions:

One employee has been working at "XYZ Industries" for 3 years. Now, "XYZ Industries" has been closed by the owners, and all the workers have been shifted to a new firm, "XYZ_NEW_firm".

In this case, the query is as listed below:

1) Now, one employee has resigned from his job at "XYZ_NEW_firm" after 2 years and claims gratuity, stating, "I have completed 5 years" (3 years in "XYZ_Industries" + 2 years in "XYZ_NEW_firm").

In this scenario, is it the legal liability of "XYZ_NEW_firm" to pay gratuity to the resigned employee?

Kindly provide a solution.

Best Regards,
Max

From India, New Delhi
Acknowledge(0)
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If the company has subscribed to a group gratuity scheme with LIC or any other insurance companies covering all employees, then the nominee would be eligible for the entire tenure of service of the deceased (notionally calculable) by applying the formula last drawn salary/26 X 15 X years of service notionally rendered till retirement. Twenty lakhs is the maximum under the Act. It depends on the last drawn salary and is not necessarily a rule. In this case, qualifying service of 5 years continuous service need not be complied with.

P. Senthilkumar

From India, Chennai
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