Dear All,
Seeking your valuable comments on the situation below:
Company A outsources its IT services to Company B with a few key points as below:
1. Employees have a choice to serve Company A till 31st Jan 2012
1.1 Gratuity (@4.7% of basic salary) has been allocated as part of CTC (remuneration) for such affected employees since their date of joining in Company A
2. Such affected employees have an option to serve Company B on the same remuneration as with Company A w.e.f 1st Feb, 2012
3. Company A is offering compensation to such affected employees in terms of ex-gratia, retention bonus et al
4. The interesting point - Company A issues an HR policy stating that ONLY the affected employees with tenure of 4 years or more will be paid their gratuity without adequate explanation and are adament enough to ignore majority of such affected employees who've NOT BEEN ABLE TO fulfil the 4 years 240 days eligibility requirement
Questions:
1. Is it legally (as well as morally) valid for such affected employees, regardless of their continuous service duration in Company A, to seek their gratuity allocated for every year of their continuous service?
2. Is there any indian law to challenge such HR policy so that such affected employees get their amount allocated as gratuity from their remuneration since their date of joing in Company A, regardless of their continuous service duration?
3. There's a lot of money allocated as gratuity for such affected employees with continuous service of less than 4 years out there (quite likely within a company trust but certainly not in government authority) and Company A HR vaguely decides 4 years and above as their threshold. Does it not smell like corruption to anyone?
Many thanks in advance!!
