I have been working for 6+ years in an IT company. The employer is transferring me to another company. Both companies have different names and processes, but the management is the same person. Should I ask them for a proper relieving document with the Gratuity amount?
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Dear Colleague,
An employee may be deputed or transferred to another company of the same group without affecting the salary and terms of employment, which is a legally allowed practice. Kindly check whether the other company is also owned by the same employer or not. Consider any impact on your terms of employment, pay, benefits, and working conditions. Any such movements need to be formalized by issuing a letter of deputation or transfer, which should be shared with you either manually or digitally. If this has not been done, please request the letter.
Once you receive the letter, you will understand the nature of the movement. If it involves a different company, request your Full and Final settlement including gratuity, and ensure that a new date of joining is obtained with a fresh order of appointment, etc. Failure to do so may result in difficulties in obtaining your PF, gratuity, and other benefits.
From India, Chennai
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337An employee may be deputed or transferred to another company of the same group without affecting the salary and terms of employment, which is a legally allowed practice. Kindly check whether the other company is also owned by the same employer or not. Consider any impact on your terms of employment, pay, benefits, and working conditions. Any such movements need to be formalized by issuing a letter of deputation or transfer, which should be shared with you either manually or digitally. If this has not been done, please request the letter.
Once you receive the letter, you will understand the nature of the movement. If it involves a different company, request your Full and Final settlement including gratuity, and ensure that a new date of joining is obtained with a fresh order of appointment, etc. Failure to do so may result in difficulties in obtaining your PF, gratuity, and other benefits.
From India, Chennai
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The approach of different companies in this case is different.
In some cases, they agree to continue the employment as if there was no transfer or there is no break in employment. In that case, you need not ask for a full and final settlement as you will continue to get the benefit under the Gratuity Act in the new company. For that, you must get the point clarified in writing from the management; specifically, it should be specified in the new appointment letter you receive from the company you move to.
If the company is not willing to give you continuity, then you should ask for full and final settlement before moving to the new company.
From India, Mumbai
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In some cases, they agree to continue the employment as if there was no transfer or there is no break in employment. In that case, you need not ask for a full and final settlement as you will continue to get the benefit under the Gratuity Act in the new company. For that, you must get the point clarified in writing from the management; specifically, it should be specified in the new appointment letter you receive from the company you move to.
If the company is not willing to give you continuity, then you should ask for full and final settlement before moving to the new company.
From India, Mumbai
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