Gratuity

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 Hi all
1. If an employee is transfered from company (x) to sister company (Y), has worked for 6 years in
X and 2 years in Y. shall gratuity be paid for 8 years or only for 6 years?
2. Also Gratuity fund maintained by x be transfered to Y ?
3. while on resignation who shall bear the gratuity company X ,company Y or both ?
Regards,
Harie

U S Sharma

U S Sharma (Expert)

11 July 2011 depending on the management structure the gradutity is payable for whole 8 years,
if sister concern is not in same management then graduity was payable at the time of transfer itself.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

13 July 2011 In case the sister concern is in the same management then it is for 8 years. You have to see the terms of appointment and if there is any clause for payment of gratuity or not. In case there is no provision then the main company shall pay the Gratuity only for 6 years and the next sister concern shall pay on completion of number of years.

Gratuity is based on the number of years service and not on the basis of the employees number of years service in his life time.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now