Sir, I worked in a Private Limited Company from July 2006 to September 2017 as an Accounts Manager. From July 2012 to April 2014, they paid my salary through their Sister Concern Company, with the same directors and office premises for both companies. I handled the accounts of both companies. Can I calculate gratuity from 2006 to 2017? Please help.
From India, New Delhi
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3From India, New Delhi
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Dear friend,
Common ownership of different industrial establishments by the same individual or a group of persons does not ensure the transfer of employees among the various units at the employer's discretion. In the eyes of the law, all such units are separate legal entities with independent operations unless they share a common balance sheet and functional integrity. There is no such term or concept as "sister concern" in any law related to business entities. Therefore, certain factual clarifications are needed before addressing your question.
1) In which company's name were you initially appointed?
2) In which company's payroll did your name remain during the entire period from July 2006 to September 2017?
3) Prior to or after the practice of debiting the payment of your salary for the period between July 2012 and April 2014 to the account of the so-called sister company, were any formal transfer orders or inter-company notes issued?
4) Are you still in the services of the original Private Limited Company, have you resigned, or are you planning to resign?
May I expect your immediate detailed reply?
From India, Salem
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Common ownership of different industrial establishments by the same individual or a group of persons does not ensure the transfer of employees among the various units at the employer's discretion. In the eyes of the law, all such units are separate legal entities with independent operations unless they share a common balance sheet and functional integrity. There is no such term or concept as "sister concern" in any law related to business entities. Therefore, certain factual clarifications are needed before addressing your question.
1) In which company's name were you initially appointed?
2) In which company's payroll did your name remain during the entire period from July 2006 to September 2017?
3) Prior to or after the practice of debiting the payment of your salary for the period between July 2012 and April 2014 to the account of the so-called sister company, were any formal transfer orders or inter-company notes issued?
4) Are you still in the services of the original Private Limited Company, have you resigned, or are you planning to resign?
May I expect your immediate detailed reply?
From India, Salem
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Dear Sir,
The answer to your question is as follows:
1. I was appointed at MTC in 2006. They formed a new company in 2010, and I was responsible for handling the accounts of both companies as the accounts head.
2. No formal transfer letter was issued when I received my salary from their sister concern company named "Imperial."
3. I left the organization in September 2017 because they did not approve maternity leave for the period from 1st October 2017 to 31st March 2017.
4. After April 2014 to 30th September, they once again paid my salary from MTC.
I hope this helps. Let me know if you need any further clarification.
Thank you.
From India, New Delhi
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The answer to your question is as follows:
1. I was appointed at MTC in 2006. They formed a new company in 2010, and I was responsible for handling the accounts of both companies as the accounts head.
2. No formal transfer letter was issued when I received my salary from their sister concern company named "Imperial."
3. I left the organization in September 2017 because they did not approve maternity leave for the period from 1st October 2017 to 31st March 2017.
4. After April 2014 to 30th September, they once again paid my salary from MTC.
I hope this helps. Let me know if you need any further clarification.
Thank you.
From India, New Delhi
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(Fact Check Failed/Partial)-The user reply contains inaccuracies regarding the dates and information provided. The mention of the company names and the maternity leave issue are not directly related to the calculation of gratuity. Kindly focus on the period worked for gratuity calculation.
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From your latest post, it is evident that you were in the services of the MTC from 2006 to 2017 until September and resigned from your job. However, in the meantime, when the new company styled as "Imperial" was formed either by MTC or by its directors or owners as the case may be, you were asked to look after the accounts of MTC, and you also did so as an employee of Imperial effective from 2010.
Obviously, as per the oral instructions of the persons who happened to be the directors or partners of both companies, your salary for the period from July 2012 to April 2014 was debited to the newly formed company's accounts. Though as the Accounts Head for both companies, you were aware of it, you didn't raise any objections to such practice that continued only up to April 2014 for the probable reason that you lightly took it as a matter of book adjustment without any formal orders of transfer of your services or any inter-company note.
From May 2014 up to September 2017, your salary was paid again from the old company. And you put down the papers in September 2017 due to the grievance you just mentioned. Therefore, you had been in the employment of MTC continuously without any formal/official break and rendered a continuous service of 11 years.
You send a formal notice to MTC claiming gratuity for the entire period of your service and await its response. Later, you can file your claim for gratuity depending on their response.
From India, Salem
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Obviously, as per the oral instructions of the persons who happened to be the directors or partners of both companies, your salary for the period from July 2012 to April 2014 was debited to the newly formed company's accounts. Though as the Accounts Head for both companies, you were aware of it, you didn't raise any objections to such practice that continued only up to April 2014 for the probable reason that you lightly took it as a matter of book adjustment without any formal orders of transfer of your services or any inter-company note.
From May 2014 up to September 2017, your salary was paid again from the old company. And you put down the papers in September 2017 due to the grievance you just mentioned. Therefore, you had been in the employment of MTC continuously without any formal/official break and rendered a continuous service of 11 years.
You send a formal notice to MTC claiming gratuity for the entire period of your service and await its response. Later, you can file your claim for gratuity depending on their response.
From India, Salem
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(Fact Check Failed/Partial)-The user reply contains inaccurate information. As per the original post, Gratuity is calculated based on continuous service, not split salary payments between sister concerns. Kindly seek legal advice for your specific case.
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Sir, thankyou so much for solving my query.
From India, New Delhi
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From India, New Delhi
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(Fact Checked)-Gratuity can be calculated for the period July 2012 to September 2017 based on your role as Accounts Manager. Seek legal advice for any complexities. (1 Acknowledge point)
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First you orally speak to the concerned to provide gratuity. If they have not responded as sir said you can send written notice to the concerned. You are eligible for gratuity. Regards,
From India, Bangalore
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From India, Bangalore
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(Fact Check Failed/Partial)-The user reply contains some inaccuracies. Please note that the process for gratuity entitlement is legally defined. You are eligible for gratuity from the date of joining, subject to certain conditions.
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Subject: Account Clearance for Gratuity Payment
Dear Sir,
I have applied for gratuity, and they are ready to pay the amount. However, before issuing the payment, they require a no dues declaration for account clearance via email. They mentioned that once I send the declaration, they will remit the amount directly to my account. Could you please advise me on how to proceed?
Regards,
Anjali Kharpuse
From India, New Delhi
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Dear Sir,
I have applied for gratuity, and they are ready to pay the amount. However, before issuing the payment, they require a no dues declaration for account clearance via email. They mentioned that once I send the declaration, they will remit the amount directly to my account. Could you please advise me on how to proceed?
Regards,
Anjali Kharpuse
From India, New Delhi
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(Fact Check Failed/Partial)-The company asking for a no-dues declaration before paying gratuity is not a standard practice. You are entitled to gratuity regardless of any such declaration. Thank you for seeking clarification on this matter.
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Hi, Normally all companies collect NDC from employees before clearing dues. If they have any standard format to sign please check it for Gratuity amount before sign and then decide.
From India, Madras
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From India, Madras
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(Fact Check Failed/Partial)-The user reply contains incorrect information. In India, the Payment of Gratuity Act, 1972 mandates gratuity payment for employees who have completed five years of continuous service. The period from 2006 to 2017 would qualify for gratuity calculation. The fact that the salary was paid by a sister concern company under the same management does not necessarily impact gratuity eligibility.
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc
CiteHR.AI
(Fact Check Failed/Partial)-The user reply contains accurate information regarding the concept of sister concerns and the legal implications of common ownership of different industrial establishments. However, the reply lacks specific guidance on calculating gratuity. More clarity is needed on the gratuity calculation aspect.