Dear Tittli,
This is confirming that, we too recently transferred a few employees, from our main company to a fresh company, wherein the directors remained same. (This had to be done due to certain statutory requisites)
But, we issued a single transfer letter, stating that their all employment benefits, their job descriptions and rules, remain same,. And all their benefits including, leaves and gratuity shall be continued as per their Date of joining.
From India, Mumbai
15This is confirming that, we too recently transferred a few employees, from our main company to a fresh company, wherein the directors remained same. (This had to be done due to certain statutory requisites)
But, we issued a single transfer letter, stating that their all employment benefits, their job descriptions and rules, remain same,. And all their benefits including, leaves and gratuity shall be continued as per their Date of joining.
From India, Mumbai
Dear Tittli,
At last the cat is out of the bag! In merger cases of Companies the assets and liabilities of the merging Company is completely transferred to the merged Company. By cross-reference of the contents of your various posts so far, the emerging position, therefore, appears to me as follows and you can correct them if found contrary or wrong due to my lack of understanding:
(1) With effect from 01-04-2014, the proprietorship company ceases to exist.
(2) Without any formal intimation about the merger and the transfer of their services, the employees of the Proprietorship Company were already transferred to the Partnership Company with immediate effect. Therefore, they are the regular employees of the Partnership Company wtth effect from the date of their transfer.
(3) Since they were not given any option in this regard either by the Sole Proprietor or by the Partnership Company, the transfer of the services of the employees is deemed to be with continuity of their past service.
(4) Hence, no necessity for submission of resignation as insisted by the management now nor any experience certificate.
(5) In case of termination of any one of the absorbed employees for any reason whatsoever either now or later, the responsibility of settling terminal benefits for the entire length of service rendered in both the Companies rests with the Partnership Firm.
From India, Salem
At last the cat is out of the bag! In merger cases of Companies the assets and liabilities of the merging Company is completely transferred to the merged Company. By cross-reference of the contents of your various posts so far, the emerging position, therefore, appears to me as follows and you can correct them if found contrary or wrong due to my lack of understanding:
(1) With effect from 01-04-2014, the proprietorship company ceases to exist.
(2) Without any formal intimation about the merger and the transfer of their services, the employees of the Proprietorship Company were already transferred to the Partnership Company with immediate effect. Therefore, they are the regular employees of the Partnership Company wtth effect from the date of their transfer.
(3) Since they were not given any option in this regard either by the Sole Proprietor or by the Partnership Company, the transfer of the services of the employees is deemed to be with continuity of their past service.
(4) Hence, no necessity for submission of resignation as insisted by the management now nor any experience certificate.
(5) In case of termination of any one of the absorbed employees for any reason whatsoever either now or later, the responsibility of settling terminal benefits for the entire length of service rendered in both the Companies rests with the Partnership Firm.
From India, Salem
Greetings,
But these things, as mentioned, should be verified. Resignation itself states end of employment. Resulting in losses for the employees.
The transfer letters have to be issued, to avoid any further apprehensions and ambiguity.
The transfer of gratuity involves formalities from LIC.
There is lot of paperwork involved.
We have transferred the provident fund and salary accounts of the employees and the gratuity transfer from one company to another, is under process.
Please do take this up with the management at the earliest
From India, Mumbai
But these things, as mentioned, should be verified. Resignation itself states end of employment. Resulting in losses for the employees.
The transfer letters have to be issued, to avoid any further apprehensions and ambiguity.
The transfer of gratuity involves formalities from LIC.
There is lot of paperwork involved.
We have transferred the provident fund and salary accounts of the employees and the gratuity transfer from one company to another, is under process.
Please do take this up with the management at the earliest
From India, Mumbai
For New Organization, it would be considered as per the Appointment Letter Date.
As for the old proprietory firm, they need to settle the payment of Gratuity to all the applicable employees who had completed their minimum of 5 Years of Job.
Regards,
Dr. Urjit Kavi
From India, Delhi
As for the old proprietory firm, they need to settle the payment of Gratuity to all the applicable employees who had completed their minimum of 5 Years of Job.
Regards,
Dr. Urjit Kavi
From India, Delhi
Greetings,
Yes it does so.
But what happens to people who are less than five years with the company. ??
For this sole reason, our management did not go for full and final settlement, but kept the employment, in continuation.
From India, Mumbai
Yes it does so.
But what happens to people who are less than five years with the company. ??
For this sole reason, our management did not go for full and final settlement, but kept the employment, in continuation.
From India, Mumbai
Dear Umakanthan Sir,
Please advise,
Now our management tells that in proprietary firm employees are not eligible for gratuity as per law. Is it true. Does this mean that all employees who have been asked to resign from the proprietary firm will loose out on their gratuity for no fault of theirs. Incase this is not the case, can you please guide me where I can find some evidence stating that as per gratuity act, even employees in a proprietary firm are eligible for gratuity
Thanks & Regards,
Tittli
From India, Bharuch
Please advise,
Now our management tells that in proprietary firm employees are not eligible for gratuity as per law. Is it true. Does this mean that all employees who have been asked to resign from the proprietary firm will loose out on their gratuity for no fault of theirs. Incase this is not the case, can you please guide me where I can find some evidence stating that as per gratuity act, even employees in a proprietary firm are eligible for gratuity
Thanks & Regards,
Tittli
From India, Bharuch
Dear Tittli,
All along my answers to your questions were with an undercurrent of abundant caution not to sow the seeds of distrust in the minds of the employees whose loyalty to the employer is great and unquestionable and spoil their otherwise smooth relationship with the new management in which the erstwhile proprietor happens to be a partner too. That's why I chose to answer in a very generalized way. The facts that though the employees are numbering to 100 and the merger being certain and well thought-out by the family running both the companies, there was not even a formal discussion with them on this matter and one fine morning they were suddenly in the employment of a new firm indicate something messy utilizing the blind loyalty of the employees and their virtual lack of representation. This could be the outcome of some wrong advice to the management or their come-what-may tendency. And your latest post informing the forum about the new management's version of non-eligibility of proprietoryship firm's employees to gratuity reveals that the entire operation of the en masse transfer of the services of the employees of the defunct firm without any authentication either by the transferor or the transferree is a schematic exercise to circumvent the provisions of Section 25FF of the Industrial Disputes Act,1947 and the Payment of Gratuity Act,1972.
Sec.25FF stipulates that every workman with not less than one year service in an undertaking shall be paid compensation as per Sec.25F as if he has been retrenched when the ownership or the management of the undertaking is transferred either by agreement or operation of Law. So, Tittli, you are all eligible to retrenchment compensation on merger @ 15 days wages last-drawn, apart from gratuity.
However, this will not be applicable when - (1) the service of the workmen has not been interrupted by such transfer. (2) the service conditions after transfer are not less favourable AND (3) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.
When the employees transferred are kept in the dark about the terms of transfer, how can they stake their claims either for retrenchment compensation or gratuity now or later against the Partnership Firm?
Don't believe everything told by the management in blind faith and loyalty and become a simpleton.
Better, first raise a formal issue with the management through some efficient and sincere Trade Unionist and if not fruitful, then raise a dispute under Sec.2k of the Industrial Disputes Act,1947.
From India, Salem
All along my answers to your questions were with an undercurrent of abundant caution not to sow the seeds of distrust in the minds of the employees whose loyalty to the employer is great and unquestionable and spoil their otherwise smooth relationship with the new management in which the erstwhile proprietor happens to be a partner too. That's why I chose to answer in a very generalized way. The facts that though the employees are numbering to 100 and the merger being certain and well thought-out by the family running both the companies, there was not even a formal discussion with them on this matter and one fine morning they were suddenly in the employment of a new firm indicate something messy utilizing the blind loyalty of the employees and their virtual lack of representation. This could be the outcome of some wrong advice to the management or their come-what-may tendency. And your latest post informing the forum about the new management's version of non-eligibility of proprietoryship firm's employees to gratuity reveals that the entire operation of the en masse transfer of the services of the employees of the defunct firm without any authentication either by the transferor or the transferree is a schematic exercise to circumvent the provisions of Section 25FF of the Industrial Disputes Act,1947 and the Payment of Gratuity Act,1972.
Sec.25FF stipulates that every workman with not less than one year service in an undertaking shall be paid compensation as per Sec.25F as if he has been retrenched when the ownership or the management of the undertaking is transferred either by agreement or operation of Law. So, Tittli, you are all eligible to retrenchment compensation on merger @ 15 days wages last-drawn, apart from gratuity.
However, this will not be applicable when - (1) the service of the workmen has not been interrupted by such transfer. (2) the service conditions after transfer are not less favourable AND (3) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.
When the employees transferred are kept in the dark about the terms of transfer, how can they stake their claims either for retrenchment compensation or gratuity now or later against the Partnership Firm?
Don't believe everything told by the management in blind faith and loyalty and become a simpleton.
Better, first raise a formal issue with the management through some efficient and sincere Trade Unionist and if not fruitful, then raise a dispute under Sec.2k of the Industrial Disputes Act,1947.
From India, Salem
Thanks to all members especially Umakanthan sir for patiently answering my questions. Just one more clarification needed, are members of a proprietary firm eligible for gratuity? Iam once again repeating this question because I went through the gratuity act and did not find any mention that gratuity is applicable for only partnership/pvt ltd firm?
Request you to please clarify?
From India, Bharuch
Request you to please clarify?
From India, Bharuch
Hi, Please let me know whether an employee can claim gratuity if the employer asks to resign. The work period of the employee is of more than 5 years. As after 2 month of my resignation,i got my particular month salary and incentive but i did not got my gratuity amount.I need your help how to claim for gratuity. I would request you to provide me suggestion on this and also help me with your contact number. Regards Avinash Kaur Dhingra
From India, Mumbai
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc