Gratuity Eligibility: Does Switching Payroll Vendors Affect Your Benefits?

Hello everyone, this is Khushal.

I have a question: if an employee works on third party payroll and after 4 years the principal employer changes the vendor, and the employee migrates to the other vendor's payroll, does the employee still receive gratuity?

Dear Khushal,

This actually differs based on your management decision. You need to check with them. Normally, when a contractor is changed and they complete their FnF, that means their liability ends there. However, if it is not done, it may be intended to be considered as a continuation of service.

Please review this information and let me know if you need any further clarification.

Thank you.