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s-k-goyal
Can anyone tell clear the under noted query about the Gratuity:-
1. Case No 1.If an employee work in A firm for 3 years and 4 years in B firm. Both the firm are being run by one employer, so in this case, will the employee get the benefit of Gratuity
2. Case no 2. If an employee work in A firm for 8 years and 6 years in B firm. Both the firm are being run by one employer, so in this case will the employee get the benefit of Gratuity?
In both cases how an employee can get the benefit of Gratuity because there is a service break in both the cases
Please suggest to me the way


aussiejohn
662

Please amend the heading to reflect the question you are asking in your post. Thank you.
From Australia, Melbourne
vmlakshminarayanan
943

Hi,

Case No.1 : If A and B firm are separate entities and separate appointment letter / relieving letter is issued then employee is not eligible for Gratuity. However employer at his own discretion can consider to release Gratuity considering his DOJ with A firm as start and end date as last working day in B firm, only for the purpose of Gratuity calculation provided there is no break in service in between A and B firm.

Case No.2 : Same like case no.1 , If A and B firm are separate entities with separate appointment letter and relieving letter issue and if 8 and 6 years continuous service is rendered separate Gratuity for A and B firm can be claimed or same like case no.1 Employer at his own discretion can consider both 8+6 years as one service of 14 years and can release single gratuity payment provided there is no break.

Earlier in start of my career I worked with two different entities run by same employer but got a single Gratuity payment at the time of exit based on my request and I took service continuity letter for the purpose of Gratuity.

More importantly A and B firm should come under the purview of Gratuity Act (The Act is applicable, to factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, and to shops and other establishments, Employing 10 or more workmen.).

From India, Madras
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