Hello Esteemed People, I have worked as a contractor for 1 year with a Client and 4 Years 6 months on Clients payroll, Total of 5 Years and 6 Months.
In this case, Will I be eligible for gratuity?
If Yes, What are the pointers I should bring into HR's notice? Please share your valuable opinion.
From India, Mumbai
In this case, Will I be eligible for gratuity?
If Yes, What are the pointers I should bring into HR's notice? Please share your valuable opinion.
From India, Mumbai
Dear Tarun,
Your engagement with the said client as a contractor for an earlier period of a year is simply based on a contract for service creating no substantial employment relationship of employer and employee between the client and yourself. Therefore, it cannot be added to the later period of 4 years and 6 months you served under the same client as an employee by means of a contract of service so as to enable you to claim gratuity under the Payment of Gratuity Act, 1972. Only upon the completion of not less than 5 years of continuous service under the same employer as an employee, you are eligible to claim gratuity in case of any normal termination of your employment.
From India, Salem
5967Your engagement with the said client as a contractor for an earlier period of a year is simply based on a contract for service creating no substantial employment relationship of employer and employee between the client and yourself. Therefore, it cannot be added to the later period of 4 years and 6 months you served under the same client as an employee by means of a contract of service so as to enable you to claim gratuity under the Payment of Gratuity Act, 1972. Only upon the completion of not less than 5 years of continuous service under the same employer as an employee, you are eligible to claim gratuity in case of any normal termination of your employment.
From India, Salem
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx