Gratuity Transfer if Company changes its name
krishan kumar
(Querist) 18 July 2011
This query is : Resolved
Hi,
I am working in ABC company in Okhla Delhi from last 4 years. Now Company changing its name from ABC company to BBC company (don't know whether incorporating new company with the name of BBC company). Mangement ask us to resign from ABC company and it will transfer all the leave benefits and gratuity to BBC company. Is it possible to transfer the gratuity like this. The company is giving in written all the transfers on BBC company's LetterHead. Shall we resign from the ABC company to join BBC Company. All benefits transfers would be legal as these must be mentioned in new confirmation letter from BBC company's on its LetterHead? Tell me what to do if its not legal and not possible.
Guest
(Expert) 04 September 2011
If the company as asked its employees to resign and then transfer effected that means the employees will get their relations severed from their parent company on resignation and their gratuity would become payable from the parent company, not by the other company. However, if the other company (BBC) gives in writing to the employees that all their terminal benefits would get transferred to the new company and past service would also count towards their terminal benefits, only then they would be able to claim terminal benefits from the second company on resignation, termination or retirement.
Any assurance given by the parent company (ABC) on behalf of the 2nd company (BBC) would not be legally valid unless supported by a valid resolution of the company 'BBC' authorising the previous company (ABC) to do so.
