Dear Seniors - Advice Required Urgently.

Dear Seniors

My company is a group of company (2 Entities Namely XX & YY) and we are planning to promote one of our YY Company and XX is a major company which has major share of employees around 500.

As we plan to move nearly 40 employees from XX to YY. Out of 40, 15 employees crossed 5 years and rest are under 5 years. Management plan is to move 40 employee and settle all their dues (Like PF, Leave encasement & Gratuity (Only those who are eligible)and lets begin their new innings in new company in YY.

My Questions are :

Out of 40, 15 employees are eligible for gratuity and rest 25 not eligible.

1. So let us assume in future in this transfer if any employee completed his/her 3 years in XX Company later he joined in YY and Completed 3 years. In this case has he eligible to claim gratuity like 3+3=6 years?when he going out from YY company later?

2. Case two if I am settled gratuity for the 15 employees(those who are already crossed 5 yrs in XX company) and transfer them in to YY company. In this case if any employee leave the company after served 2 years in YY Company can he/she claim gratuity for the two years in YY (5 years in XX already settled and 2 Years in YY)

Since its group of company and transfer happen within in this group. Hence please clarity.

Thanks for your response in advance.

Regards

Madhan

HI
There are two options here.
1. Transfer with continuation of service, here new roll but with the service continues
2. Moving to new roll by settling all the dues - here all the dues of the employees are settled and they are taken in to the new rolls. It is considered as fresh employment. You have give a freah appointment letter and do other formalities.
To your questions:
1. if transfer took place, yes the employee is entitled to recieve all benefits like gratuity (3 yrs in XX and 3 yrs in YY), so years of work in your company is 6 years
2. You cant settle gratuity in part payment. settle all the due in the XX company or transfer them and pay all due while leaving in YY company.