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Gratuity payment not done while doing final settlement 

Shivendra Pratap Singh

Advocate (Lucknow)

Online advising since Oct. 2014

Civil Law | Service & Labour

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Question: Gratuity payment not done while doing final settlement while leaving the organisation. This was a case of an employment where I was working with 2 group companies of durations of 4.4 yrs and 1.6 yrs ..In total I have completed 5.10 yrs with that group Question I have a situation where I was employed with a company for 4.2 yrs . Now the company transferred me to their sister concern due to project issues and I worked there for close to 1.5 yrs.

Now I have quit the company and joined another group.But while doing full and final settlement , the company has not released gratuity stating that I have not completed 5 yrs in a particular establishment Now , both group companies have same holding company , however are registered differently and while generating Form 16 have separate TAN as well … Can anyone please help me in this case as I am feeling perplexed what to do in this case.

Asked from: Karnataka

Your company is right and you’re not entitled for the payment of gratuity. The subsequent company is an independent holding and registered in an independent name. Hence, you cannot say that you have worked in the same company. 

Five years service in a company is mandatory for the payment of gratuity. In these circumstances you cannot claim payment of gratuity. Your claim regarding payment of gratuity was refused at the time of final settlement.

shivendra pratap singh advocate

Shivendra Pratap Singh

Advocate (Lucknow)

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