An Employee in our company was working in Hongkong roles for 10 years and he found a suitable position in India and got transferred to India roles. After a 3 year span, if he resigns, how do we calculate service eligibility for Gratuity.
Actually, as he has worked only 3 years in India, he should not receive gratuity.
But there is contention from HQ, that he has served in the company for 13 years, hence we have to pay him a gratuity.
How do you treat this case? Is he eligible for gratuity as per the India gratuity act?
Also, to know, he was directly recruited by Hongkong from some other company and he was working there all the years before moving to India.
From India, Madras
Actually, as he has worked only 3 years in India, he should not receive gratuity.
But there is contention from HQ, that he has served in the company for 13 years, hence we have to pay him a gratuity.
How do you treat this case? Is he eligible for gratuity as per the India gratuity act?
Also, to know, he was directly recruited by Hongkong from some other company and he was working there all the years before moving to India.
From India, Madras
Hongkong has its own gratuity act.
He should have been paid gratuity under that act.
Under the Indian law, he should get gratuity only for the period he has worked in the Indian company.
However, if Headoffice is willing to pay more, then there shouldn't be a problem. The law does not prevent you from paying higher than required under law
From India, Mumbai
2395He should have been paid gratuity under that act.
Under the Indian law, he should get gratuity only for the period he has worked in the Indian company.
However, if Headoffice is willing to pay more, then there shouldn't be a problem. The law does not prevent you from paying higher than required under law
From India, Mumbai
Dear Saswata Ji
Thankyou for your answer
In Hongkong there is no gratuity that was applicable to the Employee. May be our company does not have.
So, still this holds good that in India gratuity should be calculated based on the service period in India alone.
Does it have any legal or compliance issues, if he is paid with 13 years of gratuity in India, while his service in India legal entity is only 3 years.
regards
Raji
From India, Madras
Thankyou for your answer
In Hongkong there is no gratuity that was applicable to the Employee. May be our company does not have.
So, still this holds good that in India gratuity should be calculated based on the service period in India alone.
Does it have any legal or compliance issues, if he is paid with 13 years of gratuity in India, while his service in India legal entity is only 3 years.
regards
Raji
From India, Madras
If your establishment is situated in India and your employee was serving in Hong Kong, on his termination of employment due to any reason, you should pay gratuity for the entire length of service which should include his Honkong service as well as Indian service. This is because, an Indian establishment is covered by Payment of Gratuity Act and there is no reference as to where the employee works. Only thing is that the amount of gratuity will be calculated on the basis of the salary that he draws at the time of termination of employment.
From India, Kannur
From India, Kannur
If the employee has directly joined at Hongkong under their payroll, then before leaving Hongkong he has to settle his Full and final settlement before joining /transfer to India.
If it is otherwise that he had joined in India and subsequently transferred at Hongkong, then the terms of transfer may be of two types. In one type he has resigned from Indian job along with F & F and joined at Hongkong job at their pay roll and service condition.
In other case he might be deployed as Expat where the system is the employees' basic service conditions will be intact at India including salary and other benefits and the employee will get some expat allowance for maintenance may be with free staying, car facility etc. In the later case it is continuity of service. These are varying from organization to organization.
Legally eligibility of Gratuity will be depend on the terms and conditions of employment contract.
Otherwise if Organization thinks other way, they may pay gratuity for 13 years.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
If it is otherwise that he had joined in India and subsequently transferred at Hongkong, then the terms of transfer may be of two types. In one type he has resigned from Indian job along with F & F and joined at Hongkong job at their pay roll and service condition.
In other case he might be deployed as Expat where the system is the employees' basic service conditions will be intact at India including salary and other benefits and the employee will get some expat allowance for maintenance may be with free staying, car facility etc. In the later case it is continuity of service. These are varying from organization to organization.
Legally eligibility of Gratuity will be depend on the terms and conditions of employment contract.
Otherwise if Organization thinks other way, they may pay gratuity for 13 years.
S K Bandyopadhyay ( WB, Howrah)
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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