Gratuity for foreign service
Reetu Dwivedi
(Querist) 10 March 2016
This query is : Resolved
Dear Sir,
In my company Gratuity is part of our salary, its deducted on monthly basis from our salary. Sometimes an employee works in India for two year or three year and goes to parent company in US on permanent transfer, we cut him off from India payroll even PF is not contributed and full and final is paid in India but not the gratuity amount which is deducted from salary and we enroll him on US payroll for sometime and then again he comes back to India in same company and at same place and works for sometime. If he completes 5 year (India+US+India) do we need to pay him any gratuity and while he leaves the company can we provide him relieving letter stating he has completed more than 5 year of continuous service. in Indian subsidiary.
Kumar Doab
(Expert) 10 March 2016
Gratuity can be paid by sweet will of employer/employer can offer better terms as enshrined in Payment of Gratuity Act.
If the person remains employee of the Indian entity that employed him/her then he/she remains in continuous service and accordingly service certificate/gratuity can be provided.
Deputation/transfer/secondment are part of service condition's, hence the above mentioned points should take care of legalities pointed out by you.
Another point is pertaining to image of establishment.The kind of business you are into and otherwise too, the employer should not be viewed as violator of rights, or miser.
Therefore it is certainty better to extend the benefits pointed by you.
Rest is upto you.
