I have joined one limited company on 12/08/2013, and my last working day is 31/03/2019. In the month of July 2017, I was given a transfer to another company of the same group, and a transfer letter was also provided, stating that my service continues from 12/08/2013 (DOJ). In July 2018, the second company changed its name, and I was promoted. However, the letter from the new company did not mention any details regarding the appointment date considered from the date of joining (DOJ). Am I eligible for Gratuity? What process do I need to follow to claim?
From India, Jalalpur
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1From India, Jalalpur
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Change of name will not curtail the liability to pay gratuity. Gratuity entitlement comes up only when you leave the company. Any idea why company has changed its name?
From India, Pune
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From India, Pune
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Actually, I work in a shipping company, and it's a big group with lots of small companies registered under one umbrella. From my date of joining (DOJ), I have observed that every 2 to 4 years, they change the names of the companies within the group.
From India, Jalalpur
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From India, Jalalpur
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(Fact Check Failed/Partial)-The user reply is incorrect. The eligibility for gratuity is based on continuous service, irrespective of company name changes within the same group. The promotion in the new company does not affect gratuity entitlement.
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Hi,
As mentioned by the learned member, the gratuity becomes payable upon your exiting the company in this instance. Whatever may be the idea behind changing names every once in a while by your employer, you should try to send an email asking for the gratuity payment and the other formalities that need to be completed. Be courteous and try to exit in a diplomatic manner. If there is no indication of any payment coming forth after the due period of one month after your exit, try to send another letter/email asking for the process being taken up and the likely payment time. Make sure to keep all your correspondence on record just in case. The ultimate resort would be to intimate and go to the labor officer locally and take up the issue along with the details.
Thanks and Regards
From India, Hyderabad
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As mentioned by the learned member, the gratuity becomes payable upon your exiting the company in this instance. Whatever may be the idea behind changing names every once in a while by your employer, you should try to send an email asking for the gratuity payment and the other formalities that need to be completed. Be courteous and try to exit in a diplomatic manner. If there is no indication of any payment coming forth after the due period of one month after your exit, try to send another letter/email asking for the process being taken up and the likely payment time. Make sure to keep all your correspondence on record just in case. The ultimate resort would be to intimate and go to the labor officer locally and take up the issue along with the details.
Thanks and Regards
From India, Hyderabad
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(Fact Check Failed/Partial)-The user reply contains some inaccurate information regarding the eligibility for Gratuity. I will provide a correction and guidance based on the labor laws and regulations. Firstly, Gratuity is payable after completing a continuous service of at least 5 years with the same employer, as per the Payment of Gratuity Act, 1972. In your case, the service continuity is maintained from the date of joining the first company, even after being transferred within the same group. Therefore, you may be eligible for Gratuity based on your total service duration with both companies. To claim Gratuity, you should formally request the payment from your employer in writing, citing the relevant labor laws and your service details. If there is a delay or refusal in payment, you can approach the labor authorities for assistance in resolving the issue. Remember to maintain records of all communication and documents related to your employment and Gratuity claim. Thank you for seeking clarification on this matter.
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Dear friend,
Change in the name of an organization or its constitution is a mere cosmetic change, and such a change, ipso facto, cannot have any adverse impact on the existing service conditions of its employees. The Companies Act doesn't have any such classification of the registered companies as "group company," though such a term is loosely used to denote independent units of business entities under one and the same business house, like the Tata, Birla, TVS groups, for the sake of common identity and image promotion.
Coming to the periodic attempt of changing the name of a particular unit by the management, it is a valid point to ponder over as a measure of precaution from the perspective of the continuity of services of its employees. Better keep all the documents relating to your employment intact and in order. Do not yield to any pressure for resignation letters whenever such a name change occurs.
From India, Salem
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Change in the name of an organization or its constitution is a mere cosmetic change, and such a change, ipso facto, cannot have any adverse impact on the existing service conditions of its employees. The Companies Act doesn't have any such classification of the registered companies as "group company," though such a term is loosely used to denote independent units of business entities under one and the same business house, like the Tata, Birla, TVS groups, for the sake of common identity and image promotion.
Coming to the periodic attempt of changing the name of a particular unit by the management, it is a valid point to ponder over as a measure of precaution from the perspective of the continuity of services of its employees. Better keep all the documents relating to your employment intact and in order. Do not yield to any pressure for resignation letters whenever such a name change occurs.
From India, Salem
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. The change in the name of a company and promotions can impact service conditions and eligibility for benefits like gratuity. It's essential to review specific employment documents and consult labor laws for clarity.
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The views given by senior members of the forum are valid, and a change of name will not curtail the liability to pay gratuity.
As a responsible person, you need to keep all these documents for future use and reference if anything wrong happens.
From India, Mumbai
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As a responsible person, you need to keep all these documents for future use and reference if anything wrong happens.
From India, Mumbai
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(Fact Checked)-The user's reply is correct. Keeping all relevant documents for future reference is indeed a responsible practice. Thank you for sharing your insights. (1 Acknowledge point)
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(Fact Checked)-The user reply is correct. (1 Acknowledge point)