I started my career in a two-wheeler automobile firm (Partnership firm) and worked for 15 years under the same company. The founders closed the firm and transferred me to their different organization without taking any resignation or offer letter from the new company. The only thing that changed is that I was getting a salary from the new company's account. When I asked for gratuity, they said that since there was an organizational change, I am not eligible for gratuity. I am now 54 years old and have only been with the new organization for 4 years. What can I do to claim the gratuity?
Regards,
Vinod
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Regards,
Vinod
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Hi,
The Gratuity Act applies to all businesses, including partnerships, proprietorships, and limited companies.
The Payment of Gratuity Act requires organizations with at least 10 employees to pay gratuity. Even if the number of employees drops below 10, the organization is still obligated to pay gratuity. So what is the highest count of employees with the partnership firm? If gratuity is applicable, founders are liable to pay. But if you raise litigation, your current employment may come under a cloud. So be prepared for that. You can submit Gratuity form I, and if there is no response, you can appeal before the Assistant Commissioner of Labour of your firm's jurisdiction.
From another perspective, since you got transferred to the same group company (with the same management) for the purpose of gratuity, your Date of Joining (DOJ) should be considered as your initial DOJ with the partnership firm. At the time of separation from the new company, they can pay gratuity for the whole period of service, i.e., partnership firm work years + new company work years.
From India, Madras
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1153The Gratuity Act applies to all businesses, including partnerships, proprietorships, and limited companies.
The Payment of Gratuity Act requires organizations with at least 10 employees to pay gratuity. Even if the number of employees drops below 10, the organization is still obligated to pay gratuity. So what is the highest count of employees with the partnership firm? If gratuity is applicable, founders are liable to pay. But if you raise litigation, your current employment may come under a cloud. So be prepared for that. You can submit Gratuity form I, and if there is no response, you can appeal before the Assistant Commissioner of Labour of your firm's jurisdiction.
From another perspective, since you got transferred to the same group company (with the same management) for the purpose of gratuity, your Date of Joining (DOJ) should be considered as your initial DOJ with the partnership firm. At the time of separation from the new company, they can pay gratuity for the whole period of service, i.e., partnership firm work years + new company work years.
From India, Madras
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Mr. Vinod,
Are you still working with the same company or have you left? If you are still working there, there is no need to bring up the gratuity matter at this point as you are only 54 years old. You can continue in service until 58, 60, or even beyond as per your company's rules.
If you have left (resigned, been retrenched, or the contract has been terminated), then it's worth pursuing your case. It's important to ensure that there is no gap between your service in the partnership firm and your current service with this company. Continuity of employment is the criterion for determining gratuity, along with the number of employees in the company (which should be 10 or more at any time during the year).
You can reply to this post with your clarifications so that further action can be discussed.
From India, Bangalore
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Are you still working with the same company or have you left? If you are still working there, there is no need to bring up the gratuity matter at this point as you are only 54 years old. You can continue in service until 58, 60, or even beyond as per your company's rules.
If you have left (resigned, been retrenched, or the contract has been terminated), then it's worth pursuing your case. It's important to ensure that there is no gap between your service in the partnership firm and your current service with this company. Continuity of employment is the criterion for determining gratuity, along with the number of employees in the company (which should be 10 or more at any time during the year).
You can reply to this post with your clarifications so that further action can be discussed.
From India, Bangalore
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Dear Mr. Vinod,
You can claim the gratuity from the first company where you worked for 15 years. You need to file a claim petition before the controlling authority because all the amount is your right.
Furthermore, auditors are not considered as employees. However, conversely, an auditor in a company's roles is an employee. This much can be said in the absence of documentary evidence and other information. Still, you can consult a legal advisor or contact the District Labour Office with details to claim your demand.
From India, Mumbai
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You can claim the gratuity from the first company where you worked for 15 years. You need to file a claim petition before the controlling authority because all the amount is your right.
Furthermore, auditors are not considered as employees. However, conversely, an auditor in a company's roles is an employee. This much can be said in the absence of documentary evidence and other information. Still, you can consult a legal advisor or contact the District Labour Office with details to claim your demand.
From India, Mumbai
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Dear Mr. Vinod,
You can claim the gratuity from the first company where you worked for 15 years. You need to file a claim petition before the controlling authority because all the amount is your right.
Further, auditors are not considered as employees. But conversely, an auditor in a company's roles is an employee. This much can be said in the absence of documentary evidence and other information. Still, you can consult legal or contact the District Labour Office with details regarding your demand. Upon the closure of the first company, you joined the new one, but your service period shall be considered the day you joined the new company.
From India, Mumbai
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You can claim the gratuity from the first company where you worked for 15 years. You need to file a claim petition before the controlling authority because all the amount is your right.
Further, auditors are not considered as employees. But conversely, an auditor in a company's roles is an employee. This much can be said in the absence of documentary evidence and other information. Still, you can consult legal or contact the District Labour Office with details regarding your demand. Upon the closure of the first company, you joined the new one, but your service period shall be considered the day you joined the new company.
From India, Mumbai
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Weightage of 2 years in pensionable service 8.5.2017.pdf