Payment of Gratuity
Yogesh Sachdeva
(Querist) 23 November 2010
This query is : Resolved
Is gratuity payable by the previous employer/ current employer when an employee is transferred from one organisation to another organisation in accordance with his/ her terms of employment. Though the organisations may belong to the same group, they in fact are separate entities.
If the answer to above is yes, the gratuity will be payable by whom, the previous employer/ current employer?
mahendrakumar
(Expert) 24 November 2010
If your service is treated as continued without any break,you will get gratuity for the full service at the time of retirement/resignation by the new employer.
M V Gupta
(Expert) 25 November 2010
If your transfer is in the nature of deputation, then gratuity will have to be paid by your employer who is transfering you to the sister orgnisation. The payment will be made at the time of your retirement or resignation, for the entire period of service in both the organisations. Your relatioship of employer and employee with the transfering company will continue during the period of deputation. On the otherhand if you are required to resign at the time of switch over to the new organisation, then you should be paid all the gratuity and other benefits as per the contract of service at the time of your switch over itself.
Yogesh Sachdeva
(Querist) 26 November 2010
Thanks Mr. Gupta. Could you please share the relevant provision of the act/ judgement to strengthen the above stand.
M V Gupta
(Expert) 01 December 2010
The position stated by me has to be ascertained from the terms of deputation which are normally given by the transfering employer to his employee at the time of sending him on deputation or alternatively they are contained in the staff rules of the parent employer. Deputation is a matter contract between the two employers and the employee.
