Legal Question in Employment Law in India
Whether employee's gratuity received from the previous employer for rendering his past services, is considered while calculating gratuity amount by current employer, if services with current employer is more than 5 years. If gratuity received from the previous employer is 3 lacs, then what would be the amount of gratuity (7 lacs or 10 lacs) to be paid by current employer, if entitlement of gratuity amount exceeds 10 lacs.
1 Answer from Attorneys
27.11.2014
Dear Sir / Madam,
No, the Gratuity amount received from the previous employer is not considered while calculating gratuity amount by the current employer. Only the eligibility for Gratuity with the current employer begins from day one of service. There is no ceiling on the amount of Gratuity - the formula is one half month's salary for each year of completed service with the current employer i.e 5 years.
Regards,
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