I am seeking views about gratuity payable to employees being transferred from India to other country.
As per the gratuity rule in India, employees completing 5 or more than 5 years are eligible for gratuity payment, I would like to know whether a company is supposed to pay gratuity to the employee being transferred within a group company who has a separate legal entity from India to other country, even though he/she has not completed 5 years,
Request you to share your views along with proper supporting like extract of laws/ section/ sub-section/ etc.
Thanks & appreciate your help in advance
From India, Mumbai
As per the gratuity rule in India, employees completing 5 or more than 5 years are eligible for gratuity payment, I would like to know whether a company is supposed to pay gratuity to the employee being transferred within a group company who has a separate legal entity from India to other country, even though he/she has not completed 5 years,
Request you to share your views along with proper supporting like extract of laws/ section/ sub-section/ etc.
Thanks & appreciate your help in advance
From India, Mumbai
Minal. Shah,
If you see the defination of continuous service "Cessation of Work not due to any fault of employee " will be counted in continuous services & employer will be laible to pay Gratuity for this period...
For the purposes of this Act, – (1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
From India, Pune
467If you see the defination of continuous service "Cessation of Work not due to any fault of employee " will be counted in continuous services & employer will be laible to pay Gratuity for this period...
For the purposes of this Act, – (1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
From India, Pune
Dear Minal ji,
You used the word transferred within a group company.
When there is a transfer from one company to another one, there is an understanding as regards to transfer of service.
In your case the transferee company is not from India. The employee who is being transferred to another company which is not in India, is not governed by Indian laws but still you can have understanding as regards to the service i.e. Gratuity either to pay it now or otherwise.
Also you have to bear in mind what Prashant ji said in his response as above.
From India, Mumbai
You used the word transferred within a group company.
When there is a transfer from one company to another one, there is an understanding as regards to transfer of service.
In your case the transferee company is not from India. The employee who is being transferred to another company which is not in India, is not governed by Indian laws but still you can have understanding as regards to the service i.e. Gratuity either to pay it now or otherwise.
Also you have to bear in mind what Prashant ji said in his response as above.
From India, Mumbai
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Surendra_Kumar_ Verma_Etc_vs_Th e_Central_Gover nment_on_23_Sep tember_1980 Gratuity payable 4 years.pdf
Gratuity Form I.doc