viewed against the principal employer as it reflects against the spirit of the act unless the
shift of labour from one contractor to other is properly documented. This may lead to
declaration of sham contract. Supreme Court in R.K. Panda case (1994 LLR 634) has held
that workers working under different contractor for last 10 years will be absorbed by the
Based on the above, since you said you attended the work without any single day break, you are eligible for Gratuity, the Principle Employer is responsible for you Gratuity. You file an application before the Controlling authority under Payment of Gratuity Act.
On ground of your service tenure(5.6 years) makes entitiled to receive for Gratuity from your employer.
You have worked under different contractors(out sourced agencies) during these 5.6 years. In simple understanding, your tenure of service under any contractor (out sourced agencies)is not 5 years.
Hence, you are not entitiled for any gratuity.
You need to know the agencies under whom you were working, whether have obtained any licence under CL(R&A) Act or not to decide the fate. The principal employer only would come to light if the agencies under whom you were working have not obtained licence under CL(R&A) Act.
In the instant case you need to file claim before the labour authority to decide, as it is a complexed nature of complaint.
Whether the contract of out sourced agencies are sham or camouflage has to be decided by the court.
Based on the above principle I feel his claim would the admitted!
We need to understand two things i.e. what law and act speaks.
Over the period various jugements have been passed by different High Courts and Supreme Court but nothing has become a law or ammended in to act till now.
1. The workmen of a contractor can not be treated as workmen of Principal Employer, if the contractor is held a licence under CL(R&A)Act.
2. If the contract worker can not treat as an employee of PE, how come PE is liable to pay gratuity?
We need to go by the case of M/s Cummins(I) Ltd vs Industrial Cleaning Services & others 2017 is attached for reference, where HC Madras has dscussed & other cases
The Employee concerned has to submit his Gratuity Claim to his immediate Employer & Principal Employer.If the claim is rejected, he has to approach the Controlling Authority for adjudication.The controlling Authority will decide the matter based on records