What are the Rules for Employee Gratuity withdrawal For if two companies are Merged? as our company not giving any answer to it and not given withdrawal of my gratuity of the previous company.
From India, Ahmedabad
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From India, Ahmedabad
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In order to make the merger proper, there should be a tripartite agreement among the employees and management of the two companies. The purpose of the agreement is to have an understanding about the past services of the employees, the gratuity claims of the employees, retrenchment compensation which may have to be calculated in the future, the salary fixation, etc.
In that agreement, both managements should reach a consensus on how gratuity will be calculated when an employee leaves. There can also be a decision to consider the employees as newcomers in the new company, and in such a situation, who will bear the responsibility of paying the gratuity and retrenchment compensation owed to each employee. In the absence of such an agreement, it will be challenging for the employees to receive their benefits, especially considering the date of joining in the old company as the date of joining in the new company.
From India, Kannur
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4479In that agreement, both managements should reach a consensus on how gratuity will be calculated when an employee leaves. There can also be a decision to consider the employees as newcomers in the new company, and in such a situation, who will bear the responsibility of paying the gratuity and retrenchment compensation owed to each employee. In the absence of such an agreement, it will be challenging for the employees to receive their benefits, especially considering the date of joining in the old company as the date of joining in the new company.
From India, Kannur
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The present company in the process of merger there should be a Board of Director’s resolution / Share holders or Executive Board, besides all terms and conditions, there should be one condition, with regard to the service continuity of employees and the earlier liability on gratuity and other terminal benefits.
Once the merger is over, the new taken over company, has to issue individual letter to all employees on their service continuity and terminal benefits. Some time employee’s are given option to continue in the present employer on different service conditions / salary structure, or opt for voluntary retirement (Golden Hand Shake) if they are not acceptable to the new service conditions.
If the new company doesn’t come forward / follow the above procedure, the option available to the workmen is to raise an Industrial Dispute under ID Act for the liability on previous service conditions/ continuity of service, and settle their claim/ issue by a settlement under section 12(3) of the Act
From India, Madras
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Once the merger is over, the new taken over company, has to issue individual letter to all employees on their service continuity and terminal benefits. Some time employee’s are given option to continue in the present employer on different service conditions / salary structure, or opt for voluntary retirement (Golden Hand Shake) if they are not acceptable to the new service conditions.
If the new company doesn’t come forward / follow the above procedure, the option available to the workmen is to raise an Industrial Dispute under ID Act for the liability on previous service conditions/ continuity of service, and settle their claim/ issue by a settlement under section 12(3) of the Act
From India, Madras
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There are no specific rules governing such situations, but when a merger occurs, a memorandum of settlement is created between the employees and owners of the two merged companies. This memorandum details the liabilities of the employees and outlines the disbursement procedures, including who will handle it and when. A copy of the signed memorandum is sent to labor authorities and other relevant entities for their records. In the absence of such a document, employees from each company must submit a claim to their respective employers to receive gratuity payments up to the date of the merger or from the absorbed company.
Employees who have not received their due payments can escalate the issue by filing a case with the labor department or the district magistrate.
From India, Mumbai
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Employees who have not received their due payments can escalate the issue by filing a case with the labor department or the district magistrate.
From India, Mumbai
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