Payment Of Gratuity For Contractual Staff. - CiteHR
Nathrao
Insolvency N Gst Professional
+1 Other

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A contractor who appointed 15 number of staffs under his payroll and worked almost 10 years with the same principal employer. The Principal employer have taken all the contractual staffs in to the direct payroll of the company after 10 years of service under the contractor. The newly included employees are continuing with the same employer more than 7 years after inclusion in the direct payroll. The contractor didn’t settle any statutory payments like gratuity nor the contractor was directed to settle the dues at the time of taking over. The question is if any such newly included employee claims his due then How many years gratuity should be paid? Only 7 years with the present employer or 10+7 years with the contractor.
Has the principal employer while taking the employees of the contractor into his rolls accepted in writing the gratuity liability of the contractor towards the employees so taken.
In my opinion liability of contractor towards gratuity will fully fall on Principal employer. 17 Years will be taken into a/c for working out gratuity.
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