Clarification On Gratuity Benefits - CiteHR
Spectraind
Hr-executive
K C S Kutty
Labour Laws
+2 Others

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I am working in an organisation for 5 years joined april 2008. My organisation has treated all their staff as freelance consultant till 2009. After April 2009, organisation changed its policy to convert freelance consultant to employee. So I was working as freelance consultant (only with this organisation ) for FY 2008-09 and from 2009-2013 April working as employee. Hence for 1 year as freelance consultant and 4 year as employee. But I am always associated only with this organisation. Though name tag carried as freelance , we are not allowed to work outside the organisation. Now my tenure is ending on April 15, 2013, . I kindly request you to clarify me whether I am eligible for gratuity, since I completed 5 years in the same organisation. Kindly help. Thanks in advance.
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As per the new definition of the term "employee" under the paymnet of Gratuity Act, you are an employee for the year 2008-09 also.
You must have worked as Professional and the company must have paid professional Charges to you for the year 2008-09 but if you were working full time exclusively for this employer then you will be treated an an employee under the Payment of Gratuity Act.
regards,
Kamal
Please ensure that the Payment of Gratuity Act 1972 is applicable to your organisation. The Act is applicable to every factory, mine, oilfield, plantation, port and railway company and every shop or establishment in which ten or more persons are employed or were employed in any of the preceding 12 months.
Please clarify whether you were paid “salary” or “Professional charges” during the year 2008-09. Were the service conditions such as attendance, working hours, weekly holiday, leave, etc. applicable to you like any other regular employee?
Professional charges are also treated as Wages for the Payment of Gratuity Act if other service conditions and job profile/responsibities are fulfilled.
Professional or professional Charges and the terms used in income tax act and not in any labor or employmenet related acts.
The term Employee has been clearly defined under various Acts including Payment of Grauity Act.
The terms Consultants/ Professionals and payments under Professional fees have no meaning under any labour/employment related acts including payment of Gratuity Act and provisions and scope of Income Tax Act is very much limited to one's income and liability to pay taxes.
Mixing up the provisions of Labour/Employment related acts with the provisions Income Tax Act just to deny the social security benefits to employees amounts to unfair labor practice.
Hi All, I need a clarification on ,is gratuity payable to US registered company ??? But the business transaction was on INDIA.., Regards Janaki H C
If the operations of the organization is in India then it has to register itself either under Shops & Establishment Act or Factory Act.
All labor legislation or social security acts are applicable on such organizations including payment of gratuity Act.
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