Based on the present instance I have one question which I may request you to answer so as to help me out to go ahead on it.
During last year one employee from one of our Sister concern(being a group company, both are Pvt Ltd companies) has been tranferred to our Company. He was joined with the previous company in 2008 and in our Company in 2012. On joining with our Company, his salary has substancially increase and we have considered his joining date from 2008 because as per the resolution passed by the board/decision of the managment of the previous company we have to consider the service period of the said employee's from 2008The previous company/employer of the said employee is agreeable to reimburse the cost of gratuity for doing so.
In view of the above kindly advise us for recovering the gratuity amount from the preious company in respect of the 4 years period. My doubt is that the 4 years extra will remain alway and my company has to pay grautity the required gratuity to that employee for those 4 year at a higher salary(when years goes due to increase in salary his salary will increase) whenever his is resigning/retiring from my company. Is it required/adviseable/as per provsion to go on recovering eligible gratuity amount whenever there is a hike in his salary hereafter. I trust you have understood my quiery and expect a satisfactory answer for the same
From India, Thane
During last year one employee from one of our Sister concern(being a group company, both are Pvt Ltd companies) has been tranferred to our Company. He was joined with the previous company in 2008 and in our Company in 2012. On joining with our Company, his salary has substancially increase and we have considered his joining date from 2008 because as per the resolution passed by the board/decision of the managment of the previous company we have to consider the service period of the said employee's from 2008The previous company/employer of the said employee is agreeable to reimburse the cost of gratuity for doing so.
In view of the above kindly advise us for recovering the gratuity amount from the preious company in respect of the 4 years period. My doubt is that the 4 years extra will remain alway and my company has to pay grautity the required gratuity to that employee for those 4 year at a higher salary(when years goes due to increase in salary his salary will increase) whenever his is resigning/retiring from my company. Is it required/adviseable/as per provsion to go on recovering eligible gratuity amount whenever there is a hike in his salary hereafter. I trust you have understood my quiery and expect a satisfactory answer for the same
From India, Thane
Dear friend,
Gratuity is a one-time lump-sum payment paid to the employee on the termination of his employment based on the last-drawn wages and the number of continuous years of service he rendered under the same employer.When there is transfer of his services from one employer to another not withstanding the fact that both are group companies under an understanding between them and his termination takes place soon after joining the transferee company, it is for the transferor and transferee to decide the quantum of their contribution of the amount of gratuity paid as per the provisions of the P.G Act,1972.You can proceed against the previous company for recovering their share of gratuity.No recovery is possible from the resigned/retired employee on this score.
From India, Salem
6018Gratuity is a one-time lump-sum payment paid to the employee on the termination of his employment based on the last-drawn wages and the number of continuous years of service he rendered under the same employer.When there is transfer of his services from one employer to another not withstanding the fact that both are group companies under an understanding between them and his termination takes place soon after joining the transferee company, it is for the transferor and transferee to decide the quantum of their contribution of the amount of gratuity paid as per the provisions of the P.G Act,1972.You can proceed against the previous company for recovering their share of gratuity.No recovery is possible from the resigned/retired employee on this score.
From India, Salem
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc