Dear sir,
It is understood that if the employee is working in a company with fewer than 10 employees, then the employee is not eligible for gratuity. However, if the same company has sister companies and the total number of employees across all the companies exceeds 10, does gratuity apply to employees who have completed 5 years of service in all the sister companies?
Regards,
Uday
From India, Thane
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It is understood that if the employee is working in a company with fewer than 10 employees, then the employee is not eligible for gratuity. However, if the same company has sister companies and the total number of employees across all the companies exceeds 10, does gratuity apply to employees who have completed 5 years of service in all the sister companies?
Regards,
Uday
From India, Thane
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Colloquially used terms such as "group company" and "sister company" to denote common ownership of different business entities have no statutory force nor legal recognition. Each organization would be a separate legal entity, and labor laws with numerical criteria for employee applications would be independent of ownership. Even if different units engaged in the same business are located under a single roof (a common method in textile shops, jewelry stores, etc.), their independent unit status remains unchanged.
However, employees of such establishments must demonstrate that their services are consistently used across different establishments owned by the same individual to avoid circumventing labor laws like the P.G. Act and EPF Act.
From India, Salem
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6185However, employees of such establishments must demonstrate that their services are consistently used across different establishments owned by the same individual to avoid circumventing labor laws like the P.G. Act and EPF Act.
From India, Salem
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If there is financial integrality, transfer of funds from one unit to another, transferring of employees from one unit to another without affecting their service conditions, the labor authorities, EPF authorities, etc., can club them into one unit for coverage of the Act.
From India, Kannur
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From India, Kannur
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