Hi Everyone,
I worked at company A from July 2010, and in March 2012, they registered a new company named B, and all the employees were shifted to company B. They provided us with a new offer letter for company B and a relieving letter for company A. I have now resigned from company B (in Nov 2017), and my total tenure in company B was 5.8 years.
My question is, if the management and location remained the same, can my 20-month tenure at company A be considered when calculating gratuity, or will my tenure be considered as 5.8 years?
Thanks
From India, Gurgaon
Acknowledge(0)
Amend(0)
I worked at company A from July 2010, and in March 2012, they registered a new company named B, and all the employees were shifted to company B. They provided us with a new offer letter for company B and a relieving letter for company A. I have now resigned from company B (in Nov 2017), and my total tenure in company B was 5.8 years.
My question is, if the management and location remained the same, can my 20-month tenure at company A be considered when calculating gratuity, or will my tenure be considered as 5.8 years?
Thanks
From India, Gurgaon
Acknowledge(0)Amend(0)
ideally you should receive gratuity. But again need to check your separation system from company A to company B.
From India, Pune
Acknowledge(0)Amend(0)
470From India, Pune
Acknowledge(0)Amend(0)
Circumstances would have to be examined. Prima facie, from what you have described, gratuity is payable by the company.
Employer cannot get away from liability by closing one company and restarting business in another name and re-employing the same people.
From India, Pune
Acknowledge(0)Amend(0)
Employer cannot get away from liability by closing one company and restarting business in another name and re-employing the same people.
From India, Pune
Acknowledge(0)Amend(0)
I beg to differ from the views of the two members answered just before me, though their views have inherent ethical value. But, legally speaking, both companies are different entities despite the continuity of ownership in any form.
As per the post, all the employees, including the poster, resigned from Company-A in response to the offer of Company-B. Therefore, it cannot be treated as a transfer of service from one company to another with continuity of service. If they have any claim for gratuity against Company-A, it actually depends on the length of continuous service rendered there on the date of their resignation.
Regarding the query of the poster who stands resigned as of now from Company-B also, he can stake his claim for gratuity only for the period of his service actually rendered in Company-B and cannot club the service rendered in Company-A.
From India, Salem
Acknowledge(0)Amend(0)
As per the post, all the employees, including the poster, resigned from Company-A in response to the offer of Company-B. Therefore, it cannot be treated as a transfer of service from one company to another with continuity of service. If they have any claim for gratuity against Company-A, it actually depends on the length of continuous service rendered there on the date of their resignation.
Regarding the query of the poster who stands resigned as of now from Company-B also, he can stake his claim for gratuity only for the period of his service actually rendered in Company-B and cannot club the service rendered in Company-A.
From India, Salem
Acknowledge(0)Amend(0)
Technically, you cannot combine the service in company 'A' with that of company 'B' for reasons explained by Mr. Umakanthan. However, ethically, the company can consider it and compensate for the past service as the management is the same in the form of 'ex-gratia'. However, it is the company's discretion.
B. Saikumar
HR & Labour Relations Advisor
Navi Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
B. Saikumar
HR & Labour Relations Advisor
Navi Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
"all the employees are got shifted to company B. They give us new offer letter for company B and relieving letter for company A"
Uma sir,
The employees never resigned from Company A. They were shifted to Company B. It appears that the closure of Company A and the establishment of Company B with the same business and staff could be a way to avoid paying gratuity, among other potential reasons. The facts provided are insufficient to make a definitive judgment, but based on the assumption mentioned above, this is my opinion.
From India, Pune
Acknowledge(0)Amend(0)
Uma sir,
The employees never resigned from Company A. They were shifted to Company B. It appears that the closure of Company A and the establishment of Company B with the same business and staff could be a way to avoid paying gratuity, among other potential reasons. The facts provided are insufficient to make a definitive judgment, but based on the assumption mentioned above, this is my opinion.
From India, Pune
Acknowledge(0)Amend(0)
Yes, Mr. Rao, I do certainly agree that from the very bare facts casually presented by the poster, your perception would also be correct under the provisions of S.25-FF of the Industrial Disputes Act, 1947 pertaining to compensation of workmen in case of transfer of undertakings. At times, however educated, our Indian employees, in order to keep things going smoothly, are susceptible to the manipulative tendencies of their employers. That's why most of us insist that posters should always provide complete details of the problem for which they seek a solution. Now, it is up to the questioner to respond.
From India, Salem
Acknowledge(0)Amend(0)
From India, Salem
Acknowledge(0)Amend(0)
"At times, however educated, our Indian employees, in order to keep things going well, are gullible to the manipulative tendencies of their employers.
The unemployment situation is so dire that employees have to endure it or seek alternatives. Employers find it easier to manipulate and distort situations.
Most posters do not provide comprehensive information and often confuse readers with conflicting questions and posts. Nonetheless, responding to these posts to the best of one's ability in a fair manner is a learning experience for all involved."
From India, Pune
Acknowledge(0)Amend(0)
The unemployment situation is so dire that employees have to endure it or seek alternatives. Employers find it easier to manipulate and distort situations.
Most posters do not provide comprehensive information and often confuse readers with conflicting questions and posts. Nonetheless, responding to these posts to the best of one's ability in a fair manner is a learning experience for all involved."
From India, Pune
Acknowledge(0)Amend(0)
Receiving full & final settlement means severing of employer-employee relationship. Gratuity is paid on continuous service of 5 or more years, which you don’t have.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
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.