Nagarkar Vinayak L
Hr And Employee Relations Consultant
Salaried Employee
Hr Consultant
Human Resources
+2 Others

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Dear Seniors,
Eligibility of Gratuity to contract labour. Case as follows;
Mr.X is a contract employee working with ABC Company (Contractor).
1. Mr.X deputed at one company (principal employer_1) & worked for 3 years (01-01-2001 to 31-12-2003).
2. Now contractor shifted Mr.X to other company (principal employer_2) & he worked there for 3 years (01-01-2004 to 31-12-2006).
My question is whether Mr.X is eligible for Gratuity or not? My confusion here is from contractor side he worked continuously 6 years with different principal employer. Please clarify.

From United States, San Diego

Not Eligible because he did not completed 4.6 yrs ian any single company.. And in Contract labour Gratuity is called as Service pay if any thing wrong please suggest....
From India, Hyderabad
CLRA or BOCW acts are made specially for contract labors, because their duty is not fixed, and their payout is mostly consolidated of all leaves / bonus / and other incentives .

Dear Colleague,
Yes he is eligible for gratuity.
He has apparently completed more than 5 years with the same employer ( the Contractor, who is his immediate Employer) though his stint with the two client employers is 3 years each.
Vinayak Nagarkar
HR- Consultant

From India, Mumbai
Employer ,who appoint, controls and pay salary to the contract employee is liable for gratuity after 5 years of employment . Varghese Mathew 9961266966
From India, Thiruvananthapuram
Dear Priyatham The said contract employee is eligible for Gratuity subject to he can prove continuity of service in his employment with the said contractor. Shailesh Parikh 99 98 97 10 65 Vadodara
From India, Mumbai
Dear Priyatham,
As stated by you there is no discontinuation of services of the contract employee and was engaged from from 01-01-2001 to 31-12-2006. Hence, undoubtedly, the contract employee is entitled for payment of gratuity please.

From India, Hyderabad
Yes he is entitled for gratuìty from his real employer. Varghese Mathew
From India, Thiruvananthapuram
the Contract labour was an employee of the Contractor with whom he had worked continuously for six years. He is eligible for gratuity from his Contractor (i.e. immediate employer)
From India, Mumbai
I this regards, my query is,
x is contract employee, and he served the company for 6 years by following way
During the tenure of 6 years he served 3.5 years through ABC Contractor and renaming 3 years through XYZ Contractor. Are he eligible for gratuity.
Please guide.

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