Employer denied gratuity - terminated from service on the pretext of completion of project - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Sharmavk05
Consultant

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I was working for a MNC in third party role since 11.11.2011. On dated 14.06.2014 i was transferred to a new project in Gujrat. This time my name was enrolled in another outsourcing agency hiring employees for the same company. after working there for eight months i was transferred to my previous site project located in Odisha . On 27.11.2016 i was terminated from service on the pretext of completion of project , but till the date the project is going on and the company is awarded additional work order for expansion of the existing project.
On the settlement of my full and final payment i was paid only 2 and half months salary, no claim for gratuity or any other exgratia was entertained. I was told as my job tenure was less than five years so i'm not eligible for gratuity.

Why they paid you extra 2.5 month salary? Was it part of Separation Policy Clause?
Dear Prashant,
The actual facts discernible from your post are -
1) You have worked for the same MNC continuously from 11-11-2011 to 27-11-2016 at two different projects in Odisha , Gujarat and back respectively through two different third parties.
2) The first spell was from 11-11-2011 to 14-06-2014 at Odisha.
The second spell was from for about 8 months from 15-06-2014 onwards in Gujarat.
The third spell that commenced some time in February 2015 in Odisha lasted up to 27-11-2016 the date of


your termination on a/c of the alleged completion of the project.
3) It is not clear through whom your services were engaged during the last spell.
4) Since the rotation of the same employee through different contractors for the service of the same MNC is obvious, the entire arrangement seems to be an "umbrella contract"only.
Your statement that you were paid 2.5 months salary on your termination can perhaps prove the tacit admission of the MNC that the sum was paid to you as retrenchment compensation only for the service you rendered them for a period of 5 years.
Better, file a claim for gratuity under the Payment of Gratuity Act,1972 before the area Controlling Authority under the Act in Odisha.

Dear PKD,
In addition to the reply of Mr. Umakanthan.M, pl note that if your direct employer is different in all
above said three cases than you are not entailed for payment of Gratuity under the Act , however your "Principal Employer" can be ONE only.
Regards,
V K Sharma

Dear Prashant,
You per se have worked from 11.11.2011 to 26.11.2016. ie 5 years +.
But have you checked that on both your transfers, whether the company has considered the period you have taken to report on duty as Break in service?
If that is the case then you will not be eligible for gratuity.
Thank you,
Regards,
R. H. Kavarana
HR Manager
Mumbai

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