Dear Fraternity Friends
I am facing a peculier situation in which one our of employee has resigned , before joining us he had served another PSU for 3 years and six months and served us for 4 year and four month .
Now he is claiming, since he had came from one PSU to another PSU serving total of 7 years and 10 months he is entiltled for gratuity .
Members are requested to please share the views for righful disposal of the case.
Regards
From India, Delhi
I am facing a peculier situation in which one our of employee has resigned , before joining us he had served another PSU for 3 years and six months and served us for 4 year and four month .
Now he is claiming, since he had came from one PSU to another PSU serving total of 7 years and 10 months he is entiltled for gratuity .
Members are requested to please share the views for righful disposal of the case.
Regards
From India, Delhi
Dear Friend
On your question my view is,
As that employee has joined in a new establishment So he has no any relation with prior establishment (if new establishment is not a sister concern or dept. of prior est.)
Therefore why you are adding his prior service period to new service period.
You are saying your est. is PSU. But be clear all the PSUs are not a single est./PSU.
Therefore as per my view don't club the both service period for Gratuity purpose.
Regards
Manoj prasad
From India, Mumbai
12On your question my view is,
As that employee has joined in a new establishment So he has no any relation with prior establishment (if new establishment is not a sister concern or dept. of prior est.)
Therefore why you are adding his prior service period to new service period.
You are saying your est. is PSU. But be clear all the PSUs are not a single est./PSU.
Therefore as per my view don't club the both service period for Gratuity purpose.
Regards
Manoj prasad
From India, Mumbai
Dear Kasp,
As per company law, a company is an individual entity/body, having no relation with another company, even if it relates to the same group of companies, what to say of another PSU.
So, UNLESS, any agreement has been made with him earlier at the time of recruitment of the employee to count his past service in another PSU and made a specific mention in his offer letter/appointment letter, the employee does not have any right to claim benefit of his past service in another company. However, if it has specifically been agreed at the time of his appointment to give him any benefit for his past service in his previous employment, you will have to honour that.
Otherwise, you need not worry about his claim just reply to him in consultation with your company secretary.
PS Dhingra
CEO cum Management & Vigilance Consultant
Dhingra Group of Consultants
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
As per company law, a company is an individual entity/body, having no relation with another company, even if it relates to the same group of companies, what to say of another PSU.
So, UNLESS, any agreement has been made with him earlier at the time of recruitment of the employee to count his past service in another PSU and made a specific mention in his offer letter/appointment letter, the employee does not have any right to claim benefit of his past service in another company. However, if it has specifically been agreed at the time of his appointment to give him any benefit for his past service in his previous employment, you will have to honour that.
Otherwise, you need not worry about his claim just reply to him in consultation with your company secretary.
PS Dhingra
CEO cum Management & Vigilance Consultant
Dhingra Group of Consultants
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
Dear All,
I have worked in a GOI department which was subsequently converted into a central Public Sector Undertaking. I retired after 41 year long service from that PSU. From my experience and studies, I may state here that there is policy of the GOI to encourage mobility in the PSUs. The rules say that if an employee moves from one PSU to another, through proper channel, complying with all the laid down procedures such as application routed through previous employer, proper relief, transfer of service book with leave record and pay protection etc. then, his past services in the previous PSU are to be counted for gratuity purpose. Mr. kasp may please verify the service book of the employee and find out whether it is cast/ built by the previous PSU or if cast by the present PSU, whether it makes reference of past services, its continuation etc. On hearing about this, we can say whether the employee is eligible for gratuity benefits for his past services or not.
From India, Pune
I have worked in a GOI department which was subsequently converted into a central Public Sector Undertaking. I retired after 41 year long service from that PSU. From my experience and studies, I may state here that there is policy of the GOI to encourage mobility in the PSUs. The rules say that if an employee moves from one PSU to another, through proper channel, complying with all the laid down procedures such as application routed through previous employer, proper relief, transfer of service book with leave record and pay protection etc. then, his past services in the previous PSU are to be counted for gratuity purpose. Mr. kasp may please verify the service book of the employee and find out whether it is cast/ built by the previous PSU or if cast by the present PSU, whether it makes reference of past services, its continuation etc. On hearing about this, we can say whether the employee is eligible for gratuity benefits for his past services or not.
From India, Pune
Dear KASP,
I am supporting strongly and subsequently agreed with Mr. PSDhingra and all other friends except Mr. Shyam Agarwal.
No connection will be counted for one unit to another and such a service periods of two unit are different and will not be counted or clubbed for continuity of service as per the provision of The payment of Gratuity Act.
Regards,
KIRAN KALE
From India, Kolhapur
I am supporting strongly and subsequently agreed with Mr. PSDhingra and all other friends except Mr. Shyam Agarwal.
No connection will be counted for one unit to another and such a service periods of two unit are different and will not be counted or clubbed for continuity of service as per the provision of The payment of Gratuity Act.
Regards,
KIRAN KALE
From India, Kolhapur
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.
Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc