09 June 2012
An employee was working in Indian Company for 2 years.... and than he moved out of India in the same company HQ for the next 3 years. He didnt resigned from the Indian COmpany. But there was no Salary no payment No PF No TDS from the Indian Company. After 3 years he returns back to India and joins the same company.
1. will he be eligible for gratuity.?? 2. i mean 5 years will be considered or not???
09 June 2012
Payment of Gratuity Act, 1972 does not talk about services outside India and inside India. If the employee continues with the same employer, then his period of service shall be construed as "continuous Service" whether or not PF or ESI is deducted for his service outside India. As per Sec.2A continuous service with same employer is the essential fact.
But from the old Indian COmpany, there was full and final settlement. But no resignation. and there was internal transfer. with the new local contract abroad. So there was no payment of any kind in India for 3 years when the employee was out of India..... Still the eligibility remains for gratuity or not???
CAclubindia
