Hello,
A few days ago, my previous company terminated several employees due to cost-cutting. I had completed 6 years and 4 months in that company, so I asked management for my gratuity. They mentioned they would inform me later after consulting with their chartered accountant.
After a few days, I inquired again about my gratuity. They denied payment citing a technical reason:
"CA stated that I had worked for two different companies:
1. XYZ Solutions (from April 2009 to December 2011)
2. XYZ Software Solutions LLP (Since January 2012 to June 2015, which was my termination date).
Legally, I have not worked in a single organization for 5 years."
The company founder is the same person for both companies. They did not provide me with an offer letter or appointment letter when I joined. An appointment letter was provided to me on June 30, 2015.
Is the company's reason for denying gratuity valid? Please advise me on how to obtain my gratuity benefits. Any kind of help would be greatly appreciated.
Thanks
From India, Valsad
Acknowledge(0)
Amend(0)
A few days ago, my previous company terminated several employees due to cost-cutting. I had completed 6 years and 4 months in that company, so I asked management for my gratuity. They mentioned they would inform me later after consulting with their chartered accountant.
After a few days, I inquired again about my gratuity. They denied payment citing a technical reason:
"CA stated that I had worked for two different companies:
1. XYZ Solutions (from April 2009 to December 2011)
2. XYZ Software Solutions LLP (Since January 2012 to June 2015, which was my termination date).
Legally, I have not worked in a single organization for 5 years."
The company founder is the same person for both companies. They did not provide me with an offer letter or appointment letter when I joined. An appointment letter was provided to me on June 30, 2015.
Is the company's reason for denying gratuity valid? Please advise me on how to obtain my gratuity benefits. Any kind of help would be greatly appreciated.
Thanks
From India, Valsad
Acknowledge(0)Amend(0)
If your directors are the same in both companies, you are eligible for gratuity for six years of service in both companies. Hence, you may prefer to lodge a complaint with the labor officer of your area to claim gratuity. The company cannot deny gratuity on the pretext of working in different companies. If you have a list of directors from both companies, you can attach it with the complaint and mention the same.
From India, New Delhi
Acknowledge(0)Amend(0)
425From India, New Delhi
Acknowledge(0)Amend(0)
Gratuity is a welfare legislation. Laws generally get interpreted to ensure payment. Considering that both companies are under the same management, they cannot claim that you worked for two separate companies for less than 5 years. It is recommended to speak with the company and document the conversation. If there is still no response, escalate the issue to the Labour Commissioner in your area with a written complaint.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear Jitesh,
Other learned members have given their opinions. However, my post is for different reasons. You have given the subject heading as "Liable for gratuity or not?" I have changed it to "Eligible for gratuity or not?"
For info.
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Other learned members have given their opinions. However, my post is for different reasons. You have given the subject heading as "Liable for gratuity or not?" I have changed it to "Eligible for gratuity or not?"
For info.
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
you are definatily eligible for gratuty because working in different compnies having same management does not effect the service period of employee in different part
From India, Faridabad
Acknowledge(0)Amend(0)
From India, Faridabad
Acknowledge(0)Amend(0)
Hello kumaracme,
Thanks for the wonderful reply. I don't have a directors' list. How can I get that list if you know any way? My owner/boss is the same for both of the above-mentioned companies in a thread. Actually, my owner/boss deposited money into our salary account. If both companies' bank accounts have the same owner, then it's beneficial to me somehow to know the director/owner. I also have Form 16 for both companies. Are some details mentioned in Form-16 useful to me in any way? So I can prove that the management is the same.
Thanks & Regards
From India, Valsad
Acknowledge(0)Amend(0)
Thanks for the wonderful reply. I don't have a directors' list. How can I get that list if you know any way? My owner/boss is the same for both of the above-mentioned companies in a thread. Actually, my owner/boss deposited money into our salary account. If both companies' bank accounts have the same owner, then it's beneficial to me somehow to know the director/owner. I also have Form 16 for both companies. Are some details mentioned in Form-16 useful to me in any way? So I can prove that the management is the same.
Thanks & Regards
From India, Valsad
Acknowledge(0)Amend(0)
If it is true as you stated that you worked under two different companies, both legally separate, with less than five years of service in each company, then you are not eligible for gratuity. The position is different if you can prove that both companies are legally the same.
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Is your company a private limited/public limited company or is it a partnership?
Does your company publish any annual reports, etc.?
You will have to do some homework to check who is running the company and what type of company they are.
If you obtain correct information, then the chances of claiming gratuity will increase. Many owners use these tricks to avoid gratuity, PF, etc.
From India, Pune
Acknowledge(0)Amend(0)
Does your company publish any annual reports, etc.?
You will have to do some homework to check who is running the company and what type of company they are.
If you obtain correct information, then the chances of claiming gratuity will increase. Many owners use these tricks to avoid gratuity, PF, etc.
From India, Pune
Acknowledge(0)Amend(0)
The other important aspect is how the LLP was actually formed. If the LLP was formed by converting or taking over the proprietorship firm, then the entity remains the same, although the constitution has changed. In that case, the working of both the firms would really constitute a single entity, and you would be entitled to gratuity.
However, if the LLP was formed as an independent entity not connected with the previous business, or if the proprietorship has continued its independent existence after the LLP was formed, you would not be eligible for gratuity. Since you do not have the required details, the only way out for you is to speak to the authority under the gratuity act and file a complaint. The company would be required to present the details to him. If you are eligible, he will ensure that you get your dues.
From India, Mumbai
Acknowledge(0)Amend(0)
However, if the LLP was formed as an independent entity not connected with the previous business, or if the proprietorship has continued its independent existence after the LLP was formed, you would not be eligible for gratuity. Since you do not have the required details, the only way out for you is to speak to the authority under the gratuity act and file a complaint. The company would be required to present the details to him. If you are eligible, he will ensure that you get your dues.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Jitesh Ji,
You are well aware that gratuity is paid to an employee who has completed 5 years of service in a company. Maybe you have worked in the organization for more than 6 years, but it should be in writing. When you yourself are indicating having received the appointment letter on 30th June 2015, then how are you eligible for gratuity is not understood.
From India, Lucknow
Acknowledge(0)Amend(0)
You are well aware that gratuity is paid to an employee who has completed 5 years of service in a company. Maybe you have worked in the organization for more than 6 years, but it should be in writing. When you yourself are indicating having received the appointment letter on 30th June 2015, then how are you eligible for gratuity is not understood.
From India, Lucknow
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Gratuity Eligibility.pdf
LEAVE STRUCTURE OF THE COMPANY.doc
Grade Structure for Company.xls