Good evening - We started a partnership firm in February 2015 and 1 employee joined in June 2017 and it had 12 employees until March 2019. In March 2019, we did not convert our partnership firm to pvt ltd but registered new company with same name and pvt ltd. We did not provide new offer letters, joining letters to existing 12 employees of partnership firm. From March 2019 onwards, we paid all salaries, PF, health insurance from the pvt ltd company but had not registered for gratuity even if we crossed 15 employees. Now in June 2024, the employee that had joined in 2017 has resigned and asking for gratuity as his salary was processed by pvt ltd firm and has salary slips, pf from it. However, he was employee of partnership firm since his joining and no new joining letter was provided from pvt ltd firm. Can you please advise if gratuity is applicable to him?
From India, Pune
From India, Pune
Unless otherwise communicated to the employees about the service on converting the partnership firm into a company, the joining date of all employees will be the actual joining date in the firm. Therefore, you should pay gratuity to employees who had joined the partnership. Unlike PF and ESI there is no need to register for gratuity. It is automatic once the number of employees becomes 10.
From India, Kannur
4236From India, Kannur
Hi Madhu - sorry I did not understand. For us the employee is still an employee of the partnership firm and it has 4 employees only. We have not informed about conversion from partnership to pvt ltd to any employees. Can you please help to understand better?
From India, Pune
From India, Pune
It's understood all the employees right from 2015 are continued without a break. And your firm crossed 10 employees from March 2019. Since no termination or relieving of any of your employee was effected throughout all are deemed to be continued in employment. Whether partnership or co. it did not affect the continuity. The reason being employees has nothing to do whether it was partnership or co. as it appears nothing about it was communicated to the employees concerned. Therefore, faults if any, cannot be attributed to the employees. If the co is not regd.under the PoG act is the fault of the co. and the right to gratuity vested in employees under the PoG act cannot be nullified. Persons joined in 2017 who resigned in 2024 having completed 5 yrs of continuous service are entitled to gratuity.
From India, Bangalore
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc