Is there any provision where existing gratuity can be carried forward/ moved for an organization that is moving from its existing entity to a new entity? The organization plans to do an F&F settlement and relieve employees before inducting them into the new entity where management, work employees, clients, and everything will be the same. It is just having a new name and identity.
The employee will lose the benefit of a number of years in continuation if their gratuity is given to them as a part of F&F, though they continue to work for the same company in a way.
Any input will be highly appreciated.
From India, Delhi
10The employee will lose the benefit of a number of years in continuation if their gratuity is given to them as a part of F&F, though they continue to work for the same company in a way.
Any input will be highly appreciated.
From India, Delhi
If the new company is formed to acquire the old one after following the mergers and acquisition protocols then there will be an understanding as to how to deal with the service and payment of gratuity when the employees leave the new company. On the other hand, if the transformation is just a name sake arrangement of proprietor or partners, the employees should make some settlement with the new company about their service/ date of joining. Obviously, the management will not be interested in taking the employees with their dates of joining the previous establishment as their dates of joining in the new company, but the employees should demand the same or make a settlement about it preferably in the presence of a conciliation officer of Industrial Disputes Act.
The Full and Final Settlement from the old company should also have compensts like, retrenchment compensation which is almost similar to the amount of gratuity but is available to employees who have not completed 5 years. In respect of employees who are eligible to gratuity, certainly, the F&F should include gratuity amount also in addition to retrenchment compensation.
From India, Kannur
The Full and Final Settlement from the old company should also have compensts like, retrenchment compensation which is almost similar to the amount of gratuity but is available to employees who have not completed 5 years. In respect of employees who are eligible to gratuity, certainly, the F&F should include gratuity amount also in addition to retrenchment compensation.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
Security Amount Proof.docx