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Gratuty From Contractor - Doc Download - CiteHR

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A contract company (service provider) sent a employee to work with that company & he completed 9 year there, now he wants to quite the job. In this case who will give gratuty to him
From India, Bangalore
srihari2720
42

hi shiva he is eligible for gratuity and the contractor has to pay if not the principal employer has to pay as per the act. regds srihari
From India, Hyderabad
bcarya
162

Dear Shiva,
In this case, as the employee is of the Service Provider (Contractor), he is liable to pay the Gratuity to his employee. The Service Provider (Contractor) will then claim that gratuity amount from the Principal Employer, if not already paid, through valid Invoice. After this, the PE should pay the Invoice to the Service Provider.
It is recommended that, as you are the PE, you should force the Service Provider to settle the a/c of such employee and ask him to pay all the legal dues due to such employee. Assure them that as the PE, your organization will pay-back them that amount against invoice of Full & Final Settlement along with all supporting papers, if not already paid. Otherwise, it could create more problem for your organization, as you are the PE.
Hope this will help you.

From India, Delhi
jagadeesh167
7

Dear Shiva,
as we know that PE will pay the salary along with PF ESI contributions through contractor. so why we think that Contractor only liable for Gratuity?.
All the monetary benefits will be paid by the PE to the contract workers through contractor.
Hope this help full to you.

From India, Solon
bcarya
162

Dear Jagadeesh,
I would like to correct you here, PE not pay salary along with PF-ESI contributions through contractor. It is wrong to say that the PE pays through Contractor.
The PE pays the Contractor for the Contractual Services executed by them. For that, the agency deploy the manpower and execute the Job and hence they get the payment. As an employer, it is the responsibility of that contractor to comply all the statutory compliance. And, the contractor should take the contract on such rates, in which they can comply all the Legal benefits to its workmen.
As a PE, it's there responsibility to pay such rates to it's contractors in which they could comply as per Labour Law and pay all legal benefits to its employees. The PE should also ensure that the contractor is complying with all Labour Laws and ensure that the employee should get all benefits.

From India, Delhi
pon1965
604

The Liability of Principal Employer is limited as they have outsourced some employees thru a manpower supply agency. The agency in turn making payment to the supplied manpower and raises invoice to the PE with their mark-ups as per their contract/WO. The entire responsibility rests with the Manpower supply agency and the PE shall ensure the compliance of all statutory requirements. While accepting the Manpower supply rates, the agency should have taken all the tangible/intangible benefits payable to the supplied manpower incl. PF/ESI and other benefits as enshrined in the relevant acts.
Pon, chennai

From India, Lucknow
rpbiradar
3

post a link to the article along with a short excerpt and your comments.
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: doc NEW PROJ Report.doc (5.58 MB, 171 views)

rajans68
12

It is the service provider who will pay the gratuity . But the same can be recovered from the client by billing him for the same .
From India, Hyderabad
rpbiradar
3

Do NOT repeat your post in different locations - your account will be automatically removed.
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: doc 2015 a.doc (121.5 KB, 231 views)

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