Gratuity in cases of company mergers and transfers


What rules define for Gratuity payments when in cases of company mergers and transfers?


A court order states an employer cannot deprive his employees of the benefits that have accrued to them by reason of past services merely by transferring his business to another person or to another limited company; for the work done by the employees is primarily is for the benefit of the concern although the owner also derives benefit therefrom; that, therefore, a new employer is bound to take into account the services rendered by them to their predecessor-in-title.

1 Like