Hi all, A person has worked continuously in an organization for 4 years. One day he is promoted and management asked him to write a resignation letter stating last date of work. Later he got appointment letter. Now, the thing is there is a one day service gap between date of resignation and date of joining of new designation in the same organization. Now his total work experience in the organization is 7 years. Will he get gratuity in this case?
From India, undefined
5From India, undefined
Legally speaking, a resignation when accepted by the employer and acted upon by both the parties, the contract of employment comes to an end and any subsequent fresh appointment in the same organization in the same or higher post, not withstanding any gap, creates a new contract. Therefore, the terminal benefits including gratuity settles down on the basis of the service rendered during the earlier contract only and cannot be clubbed with the new contract of employment.
Morally speaking this is not a fair HR practice on the part of the employer.
By and large, if it is a real incident, it shows how gullible the concerned employee was.
From India, Salem
Morally speaking this is not a fair HR practice on the part of the employer.
By and large, if it is a real incident, it shows how gullible the concerned employee was.
From India, Salem
Exactly. If he stakes any such claim, in my opinion, he cannot be successful. My inference is that he might have been compelled to barter the previous service for the higher position offered as a fresh appointee. This position with sufficient experience might have procured him better offers from elsewhere so as to leave after three years. This might have kindled the claim for gratuity for the entire service of 7 years sans the break of one day in between.
From India, Salem
From India, Salem
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Minimum Qualifying service for Gratuity under the Payment of Gratuity Act.docx