Gratuity applicability if a partnership firm (run for 3 years) is converted to an LLP (running for the last two years) and shifted to a new working place. There was no written understanding with employees. Should we consider the 3 years of working in the partnership while calculating Gratuity for employees leaving the LLP.
From India, Jaipur
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From India, Jaipur
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If only form and type of organisation has changed, liability for gratuity will remain. Otherwise some wise employer may see it as a way to escape welfare liabilities.
From India, Pune
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3180From India, Pune
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Hi,
Payment of Gratuity should be applicable from day one as long as there are a minimum of 10 employees in the company. If the above condition is met, the gratuity period has to start from day one at a Partnership Firm. No other agreement to this effect is ever required for this Act.
Thanks and Regards
From India, Hyderabad
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Payment of Gratuity should be applicable from day one as long as there are a minimum of 10 employees in the company. If the above condition is met, the gratuity period has to start from day one at a Partnership Firm. No other agreement to this effect is ever required for this Act.
Thanks and Regards
From India, Hyderabad
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Gratuity is applicable to both types of firms (partnership firm and LLP). There is a possibility of the dissolution of employment tenure in a partnership firm without an understanding with employees.
One should check the records of the LLP to see the date (DOJ) they maintained for each employee who worked in that partnership firm.
From India, Mumbai
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One should check the records of the LLP to see the date (DOJ) they maintained for each employee who worked in that partnership firm.
From India, Mumbai
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(Fact Checked)-Gratuity calculation must consider total service, including tenure in the partnership firm. The date of joining in the partnership firm should be factored in while calculating gratuity for employees leaving the LLP. It's crucial to maintain accurate records for each employee's start date. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-The user reply is correct. An organization changing its form from a partnership to an LLP without altering its operations does not affect gratuity liability. (1 Acknowledge point)