Respected all,

Kindly guide, I have a query related to the transfer of gratuity between 2 sister companies. If an employee has joined Company A in 2015 and now he/she has been transferred to Company B in 2023, what will happen to his gratuity? Does the company have to pay off his gratuity and then transfer him to Company B?

Please guide.

From India, Nagpur
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Hi,

As both companies are different entities, you can either clear his dues at Company A, including Gratuity, or issue the employee a letter stating that "for the purpose of Gratuity, his Date of Joining (DOJ) with Company A will be considered," so that once the employee is relieved from Company B, he will receive the Gratuity for the entire period.

From India, Madras
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