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Gratuity Query in case of company name change in between service? - CiteHR

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In one organisation if one employee is joined on 15th June, 2012 with XYZ co's appointment letter. Then that company is known as ABC & he received appointment letter with ABC's letter head, where his joining date is 2nd May, 2013. Now this employee is resigning from his post & his last date of working will be 20th Feb, 2018. Is he eligible for Gratuity? Kindly provide guidelines for this case.
From India, Mumbai
vinay62
1

Can you elaborate transition of company’s name from XYZ to ABC
From India, Delhi
Babu Alexander
294

Depends on the second appointment order. If the service continuity (earlier from 15th June 2012) is taken care off, in the second appointment, (normally by change of Management, do mention a clause about the service continuity), he has completed five years continuous service and is eligible for Gratuity. If the clause is not mentioned, you are not eligible. You should have clarified at the time of receiving the ABC appointment order. However,if you have proper evidence and you could adduce before the Controller under Payment Of Gratuity Act, that both XYZ company and ABC company are one and the same and the owners / proprietors / directors are same, and the name of the company has been changed for other reasons, you may have the case to your advantage.
From India, Madras
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