Transfer of Gratuity from one company to other sister consern

[Pratyush Parashar]

Managing director of one company "ABC" wants to put their name on the other sister consern's payroll i.e. Company "XYZ", and consequently his salary is disbursed from the new company "XYZ".

Q: Is it possible to transfer his right to get the gratuity from company "ABC" to "XYZ". If yes then please quote the details of provision of Payment of Gratuity Act - 1972.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

Gratuity transfer: can an employee's gratuity entitlement move with payroll to a sister concern under the Payment of Gratuity Act?
A managing director moved onto a sister concern's payroll with salary disbursed by the sister company and queries whether his gratuity entitlement under employment with the original company can be transferred to the sister concern; the question seeks relevant provisions of the Payment of Gratuity Act, 1972 governing assignability, continuity of service, and procedural requirements for such a transfer.