Thread Started by #AccountExec

Hello all, This is the situation,
Our company shifted a number of roles to a payroll company and has deployed these staff to one of our client sites. the offer letter to the staff were given by the payroll company. We have now changed the payroll company.
My questions are:
a) From a gratuity perspective, are the staff eligible for continuity of service?
b) For those who are not yet eligible for gratuity, will their service with the previous payroll company be part of the calculation of the 5 years for eligibility criteria? The client has not changed, their role in the client site has not changed, our company managers' continue to manage these staff on a day to day basis
c) Is the payroll company liable to pay gratuity, is our company liable to pay gratuity or is the client liable to pay gartuity.
6th June 2019 From India, Mumbai
Hi
The parent company is liable to pay gratuity. However all transfer to client site or other how your parent company doucmented it is the question. It is advisable to take a service continuity letter for the purpose of gratuity from parent company if they transferred you to different entity though it might be a sister concern. Also please check you were allotted different of, emp numbers.
6th June 2019 From India, Madras
yes..very critical funny query.
First let me know your wish ? willing to pay or to avoid ...
Its all you did to escape from payment..all efforts you have already done to avoid and escape...
*company not changed..client was not changed
*wisely transferred their names to another agency's pay roll...(another payroll company)
*successfully terminated them at once by shifting their names to another pay roll company
(acted like a contractor)by giving
separate appointment letters intelligently loosing all their previous service years..
*And Moreover made all those employees as daily labour (framing like they are all under a contractor working as a daily labour)
Finally you have done every effort not to take the risk of payment of Graduity..
EVEN MORE YOU HAVE NOT SATISFIED WITH YOUR EFFORTS TO EVADING THE GRATUITY
NOW ASKING THIS PLATFORM TO OBTAIN CLARITY...
IS THERE ANYTHING TO DO MORE IN YOUR WAY TO AVOID THE BURDEN OF PAYMENT OF GRATUITY TO THOSE OF YOUR WORKERS ..
I WONDER ...PEOPLE USED TO SAY THAT IN BRITISH REGIME WHERE INDIANS WERE UNDER FOREIGN RULE WERE MOT ABLE TO GET LABOUR LAWS BENIFITS LEGALLY..
NOW EVEN MANY INDIAN FACTORIES' MANAGERS /AUDITORS/ACCOUNTS EXICUTIVES/LEGAL ADVISORS ARE USING HIGH LEVEL EFFORTS -"HOW TO DO UNFAIR LABOUR PRACTICES BY USING LOOPHOLES IN LABOUR LAWS."..
NOTHING MORE TO SAY YOUR WILL WAS DONE BY YOUR HRs successfully to avoid gratuity payment by the parent company..
except only small weak thread connections ...like in some judgements parent company has also duty if they were still directly working in your company rolls though daily labour..
but you hav even wisely escaped.
6th June 2019 From India, Nellore
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7th June 2019 From India, Delhi
Dear friend,
I am not able to understand the actual motive or the practical necessity behind such a deployment of the services of your own workforce with bag and baggage to the same clients through another intermediary viz the pay roll company. Simply put this is an arrangement of sub-contracting to intelligently deny continuity of service to the displaced employees thereby apparently make them ineligible for gratuity and other benefits associated with longer tenure of employment under the same employer.
In the first place, most probably, you would not have obtained the consent of the concerned employees or employing some intimidating tactics like creating the situation of take it or leave it. Any way, it is an unfair labor practice.
8th June 2019 From India, Salem
as per my understanding, since you are parent organization, switching payroll of the associates should not ruin the service continuity benefit of the associates.
they should get the gratuity benefit as long as you are not giving them another appointment letter through that another payroll agency.
12th June 2019 From India, Pune
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