Am I Entitled to Gratuity After 6 Years on a Long-term Contract? Seeking Advice

I worked with a Section 25 company from May 2007 to September 2013, accumulating over 6 years of continuous service. All employees, including the CEO, are on full-time long-term contracts. Initially, I was given a 3-year contract in 2007, which was renewed for an additional 5 years at the end of the second year. There has been no break in service, and no interim full and final settlements were conducted.

However, the company claims that I am ineligible for gratuity payments because I, along with other employees, worked on a contract basis, and therefore gratuity is not included in the full and final settlement.

Please advise me on whether I am entitled to receive gratuity and, if so, what steps I should take to ensure the company provides it.

Regards,
Nidhin

If you have worked for five years at a stretch, then yes, you are eligible for the gratuity. Even if some part of this period was on contract and some on the roll, you are eligible. If you have a valid record of service with the company, then contact your respective labor department regarding this.

Regards,
Rajeev Dixit

The Payment of Gratuity Act entitles one to gratuity payment after five years of employment. The nature of employment, whether regular, temporary, or contractual, does not make any difference. Once there are 5 years of continuous service, the entitlement is fully established. For gratuity purposes, the appropriate authority is the local Labour Commissioner, as the case may be. It has to be the Chennai Labour Department where you served last for filing the claim.

Regards,
KK

First of all, you need to confirm whether your company (yr.co) is covered under the Gratuity Act and if your CTC does not include the gratuity component. However, you are still eligible for gratuity, and the responsibility lies with your employer.

I assume that you have completed over 6 years of continuous service with this company. If you are no longer employed there, please proceed by submitting Form "I" to the company for your claim, ensuring you receive proper acknowledgment. If there is no response, you can initiate a complaint process; you will receive necessary guidance from the experts here.