Madhu.T.K
Industrial Relations And Labour Laws
Nagarkar Vinayak L
Hr And Employee Relations Consultant

Hi,
Can anybody please help me on the following scenario?
I worked in a company 1 year on the contract basic (on the payroll of other company) after that company made me a permanent employee on its own payroll. Now I complete 4 years as permanent employee (on the company payroll) in addition of 1 year as contract service. I wanted to know, am I applicable for gratuity or not?
Thanks!

From India
as per Act this can not be claimed.
From India, Pune
To claim Gratuity one should continuously serve min. 4 complete years and 240 days.
From India, Chennai
If you can establish a continuity of service from contract to permanent status ( date of cessation on contract employment and entry as a permanent cadre) most likely you have a case, and you raise your claim before the Authority under Payment of Gratuity Act.
From India, Madras
If you are able to establish that during the first year when you were off rolls there existed directed reporting by you to the principal employer, you were directly controlled by the principal employer, you were assessed of your performance by the principal employer and hence you were taken on the direct rolls of the company, then there is a possibility that the contract could be treated to be sham contract.Once a contract becomes sham there is a possibility that you would get the status of regular employee. But the onus to prove that the contract was sham lies on you only.
From India, Kannur
Dear colleague,
To be eligible for gratuity , one should have completed 5 years' uninterrupted continuous service. Based on your terms of appointment both as contract and so called permanent employee, if it was clearly stated that you are granted continuity of service ,then very likely you may be eligible for gratuity on cessation of employment.
Regards,
Vinayak Nagarkar
HR- Consultant

From India, Mumbai
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