An Indian citizen from India is hired by a listed company for an opportunity based in another country where he/she has served for 4+ years on the local country entity payrolls. Post that, the associate was transferred by the same company to its India entity office (group company remains the same / name of the company is the same). After playing the role for almost a year in India, the associate decides to resign, and the total experience by the last working day is 5+ years. The service was continuous across the 5+ years in the group company, and the associate will get relieved in India. In this scenario, will the associate be eligible for gratuity post getting relieved in India, as the associate serviced the company continuously for 5 years?
If the answer is yes, what are the ways in which the associate can claim the benefit in case the employer denies gratuity? If the answer is no, what are the reasons for this decision?
**Location**: Hyderabad, India
From India, Hyderabad
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If the answer is yes, what are the ways in which the associate can claim the benefit in case the employer denies gratuity? If the answer is no, what are the reasons for this decision?
**Location**: Hyderabad, India
From India, Hyderabad
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Gratuity Eligibility Across Countries - Same Group Company
In the scenario described, the associate would likely be eligible for gratuity upon getting relieved in India if the total continuous service across different entities within the same group company amounts to 5+ years. Here's a breakdown of the key points to consider:
- Eligibility for Gratuity: In India, the Payment of Gratuity Act, 1972, mandates that an employee who has completed a minimum of 5 years of continuous service is eligible for gratuity. Since the associate has served for 4+ years in another country within the same group company and then continued for almost a year in India, the total service period exceeds 5 years, making them eligible for gratuity.
- Claiming Gratuity: If the employer denies gratuity despite eligibility, the associate can take the following steps:
- [Icon] Review Employment Contract: Check the terms of the employment contract to ensure gratuity is included and understand the company's policies regarding gratuity payments.
- [Icon] Seek Legal Advice: Consult with a labor law attorney to understand the legal rights and options available for claiming gratuity.
- [Icon] Raise the Issue: Discuss the matter with HR or higher management to address the denial of gratuity and provide evidence of the continuous service period.
- Reasons for Denial: If the associate is deemed ineligible for gratuity, it could be due to misinterpretation of the law or company policies. However, based on the described circumstances, the associate should be entitled to gratuity as per Indian labor laws.
In conclusion, the associate should be eligible for gratuity post getting relieved in India considering the continuous service of 5+ years within the same group company. If faced with denial, the associate can explore legal options and engage with the employer to resolve the issue effectively.
From India, Gurugram
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28In the scenario described, the associate would likely be eligible for gratuity upon getting relieved in India if the total continuous service across different entities within the same group company amounts to 5+ years. Here's a breakdown of the key points to consider:
- Eligibility for Gratuity: In India, the Payment of Gratuity Act, 1972, mandates that an employee who has completed a minimum of 5 years of continuous service is eligible for gratuity. Since the associate has served for 4+ years in another country within the same group company and then continued for almost a year in India, the total service period exceeds 5 years, making them eligible for gratuity.
- Claiming Gratuity: If the employer denies gratuity despite eligibility, the associate can take the following steps:
- [Icon] Review Employment Contract: Check the terms of the employment contract to ensure gratuity is included and understand the company's policies regarding gratuity payments.
- [Icon] Seek Legal Advice: Consult with a labor law attorney to understand the legal rights and options available for claiming gratuity.
- [Icon] Raise the Issue: Discuss the matter with HR or higher management to address the denial of gratuity and provide evidence of the continuous service period.
- Reasons for Denial: If the associate is deemed ineligible for gratuity, it could be due to misinterpretation of the law or company policies. However, based on the described circumstances, the associate should be entitled to gratuity as per Indian labor laws.
In conclusion, the associate should be eligible for gratuity post getting relieved in India considering the continuous service of 5+ years within the same group company. If faced with denial, the associate can explore legal options and engage with the employer to resolve the issue effectively.
From India, Gurugram
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx