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PRAVEEN KUMAR (AM)     09 June 2012

Gratuity rule for continuation of service

Hi,

    I have served for 4 years and 6 months in a  PSU  and then joined another PSU  through proper channel.

As I have  not completed  5 year of service ,  So can it be possible to transfer the gratuity of 4.5 years from one PSU to other PSU for continuation of service . If yes, then what is the procedure .

Kindly reply and suggest at the earliest ,along with rules / guidelines of DPE if any.

Thanks

Praveen Kumar

09492459261   



Learning

 5 Replies

SURESH GODBOLE (ADVOCATE)     09 June 2012

Are the retiral benefit and Pension Rules Same in both PSU , Which Rules goern them

 

If Central Govt Pension Rules Govern them see Swamys Pension Rules and find your answer

MAHESH SINGH (SR. HR EXECUTIVE)     11 June 2012

Dear Praveen,

As you are saying that you have joined another PSU ,means resigend from first PSU so you are not eligible.

MAHESH SINGH

SURESH GODBOLE (ADVOCATE)     11 June 2012

Through proper channel

 

It means its technical resignation

Lien stays

But the yrs put in is small

The question is wherther u were made Permanent or on probation or temporary

The fact will throw more light

T.Rajendran (Associate Professor)     12 June 2012

Gratuity is payable by the employer to the employee consequent on retirement or resignation, but the basic requirement is that the employee must have worked atleast for full five year term. Less than five years stay with an employer on contiunuous basis does not attract gratuity benefit, Likewise, the service rendered by the employee to an employer or organization can not be carried over to another employer normally. But, in this case of migration from one PSU to another PSU the nature of transfer of service has to be considered. If lien exists for the former post in the former PSU, the employee becomes eligible. In cases of resignations, before joining a new post in a new PSU,old service of rhe employee is not continued and so I fear the employee loses his claim for gratuity for the past.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     13 June 2012

Sub Section (1) of Section 4 of the Payment of Gratuity Actimposes restrictions for the payment of gratuity. It declares the employees entitled to get gratuity. Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. (a) on his superannuation, or (2) ON HIS RETIREMENT OR RESIGNATION OR(c) on his death or disablement due to accident or disease.


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