Dear HRs,
An employee is transferred from one location to another within same group organization. He covered under Group Gratuity Scheme from LIC. Please help me with the formalities to be done at employer's / LIC end to ensure continuity of his eligibility for Gratuity benefits from date of joining at first location.
Thanks,
Rakesh Shinde
1An employee is transferred from one location to another within same group organization. He covered under Group Gratuity Scheme from LIC. Please help me with the formalities to be done at employer's / LIC end to ensure continuity of his eligibility for Gratuity benefits from date of joining at first location.
Thanks,
Rakesh Shinde
Dear Rakesh,
Despite the colloquial nomenclature group organization or group company or commonality of ownership, each organization is an independent legal entity depending on its constitution.
Therefore, when the services of the employees are transferred among the entities in the group whether by agreement or by common standing orders, the services of the transferred employees has to be treated as continuous service from entity no. one to the last where the termination of services happens at the end .
To ensure the above position, the orders of transfers should mention the continuity of services for all employment benefits including terminal benefits like gratuity
I have no idea about the availability of a single Gratuity Policy in respect of more than one employer getting clubbed together for this purpose. Better, you should consult your Insurer in this regard.
From India, Salem
Despite the colloquial nomenclature group organization or group company or commonality of ownership, each organization is an independent legal entity depending on its constitution.
Therefore, when the services of the employees are transferred among the entities in the group whether by agreement or by common standing orders, the services of the transferred employees has to be treated as continuous service from entity no. one to the last where the termination of services happens at the end .
To ensure the above position, the orders of transfers should mention the continuity of services for all employment benefits including terminal benefits like gratuity
I have no idea about the availability of a single Gratuity Policy in respect of more than one employer getting clubbed together for this purpose. Better, you should consult your Insurer in this regard.
From India, Salem
Dear Umakanthan ji,
Thank you for your remarks.
In this particular case, the Group Gratuity Scheme Policy differs state wise however it is with the same service provider (LIC of India).
I would like to request other members also to please share their experiences in similar cases.
Thanks,
Rakesh Shinde
Thank you for your remarks.
In this particular case, the Group Gratuity Scheme Policy differs state wise however it is with the same service provider (LIC of India).
I would like to request other members also to please share their experiences in similar cases.
Thanks,
Rakesh Shinde
Dear Rakesh,
It will be possible if the new entity has group gratuity scheme with LIC also. The scheme may differ but the service provider is same ( LIC). As Mr. Umakanthan has already explained about the order of transfer with terms and conditions are very important. It is the responsibility of the old employer to take care about the same with new employer and to inform you about the status. Better one confirmation letter from new employer stating the continuity of your gratuity from your actual date of joining with your old employer.
S K Bandyopadhyay
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
It will be possible if the new entity has group gratuity scheme with LIC also. The scheme may differ but the service provider is same ( LIC). As Mr. Umakanthan has already explained about the order of transfer with terms and conditions are very important. It is the responsibility of the old employer to take care about the same with new employer and to inform you about the status. Better one confirmation letter from new employer stating the continuity of your gratuity from your actual date of joining with your old employer.
S K Bandyopadhyay
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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