Dear HR Experts,
is there any judgment on payment of Gratuity by the Principal Employer in respect of contract labour working with different contractors for different time with less than 5 yrs service in respect of each contractor but more than 10 years of total service.
kindly advise and share any judgement?
Thanks
Gaurav

From India, Pune
As per as legal view, When the contract is over then the contract employee lose their service period with the particular contractor (immediate employer) where the F&F has been made immediately to the workers thereafter he can join another contractor and continue his service from beginning only.
From India, Mumbai
There was a judgement by Supreme Court regarding gratuity payable to loading / unloading workers in chennai where the court ruled that gratuity was payable thought the gangs worked under different contractors dying the period. It was a 1985 case, that took 12 years to get the final judgement
I do not have the link, you need to search for it.

From India, Mumbai
Dear Seniors, Kindly enlighten in what ways GRATUITY PAYMENT can be curtailed for contract labors in case principal employer is required to engage them for longer period? Regards Gaurav
From India, Pune
Personally I am disgusted with the approach HR managers and employers are taking to avoid their social and legal responsibilities on statutory benefits to the lowest level of workers. Gratuity amounts to 4.5% of annual pay of a worker. If that is put aside in a gratuity fund and paid from it, this does not even disrupt cash flow. And this is 4.5% of minimum wages in most cases. Still you want to deny the worker his right in the form of a small amount that would help him save some money.
The only way you can do it is to give breaks in service so that it does not amount to continuous service. However, the Supreme Court has already in some cases disregarded the service breaks where it was shown to have been specifically designated to deny gratuity.

From India, Mumbai

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