Hi all,
I need a clarification on Gratuity liability.
If an employee who works in a concern for about completed 3 years and then switches over to some other concern. While he joins in the next he transfers his PF account to the new concern and continues his employment with current for the next 4 years and wants to resign from this concern in such a case he does not want to transfer the PF fund from his current employer to the new employer.During which the current is employer is either liable for gratuity or who can ignore gratuity by stating his duration of employment(4 yeas) but his total years of experience is 7 years that is like (3+4) years?
If he ignores the gratuity why? and what is the criteria for an employee who is eligible for gratuity?
regards
srv
From India, Madras
I need a clarification on Gratuity liability.
If an employee who works in a concern for about completed 3 years and then switches over to some other concern. While he joins in the next he transfers his PF account to the new concern and continues his employment with current for the next 4 years and wants to resign from this concern in such a case he does not want to transfer the PF fund from his current employer to the new employer.During which the current is employer is either liable for gratuity or who can ignore gratuity by stating his duration of employment(4 yeas) but his total years of experience is 7 years that is like (3+4) years?
If he ignores the gratuity why? and what is the criteria for an employee who is eligible for gratuity?
regards
srv
From India, Madras
Dear Member,
Gratuity is paid to an employee on the completion of 5 years of continuous service in a single concern and in the event of Resignation, superannuation, death or disablement due to accident or disease.
From India, Mumbai
19Gratuity is paid to an employee on the completion of 5 years of continuous service in a single concern and in the event of Resignation, superannuation, death or disablement due to accident or disease.
From India, Mumbai
PF amount will be either kept with EPFO or with exempted PF Trust under the control of EPFO. In any case there is no question of transfer from one employer to another employer. Hence it cannot be clubbed with Gratuity. For gratuity minimum 5 years' service is required with an employer.
Abbas.P.S
From India, Bangalore
Abbas.P.S
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc