Is It Fair for a Consultant Treated Like an Employee to Be Denied Leave Encashment and Gratuity?

Manoj Narang
Employment Transition and Policy Application

I have been working with the company for over 5 years. In the first 2 and a half years, I was an employee, and later I became a consultant. This change was made to increase my net take-home pay as the company was not doing well and could not afford a decent hike. For the last one and a half years, we started deducting part-time leave if someone arrived late (maximum by 30 minutes) more than 2 times in a month; this policy applied to all employees. The same rule was applied to me as well, even though I was classified as a consultant. We also had login and logout times, and if you were short of hours, then your leave would be adjusted.

Inconsistencies in Policy Application

We had two other consultants to whom the company never applied these rules. Later, one more consultant joined, and they had the flexibility of leaving early or coming in late.

Appraisal Process and Discrepancies

Another issue concerns the appraisal process, where the company proposed a particular hike for me in the last financial year, which I wanted to negotiate. Later, I received an appraisal hike letter, which I did not sign but kept in my drawer. During a period of leave, the MD/HR took the letter from my drawer. When I inquired about it, my MD assured me she would address it at the year's end.

Resignation and Pending Dues

In December, she introduced one of her tenants as an investor, and as events unfolded, I decided to resign. Since then, I have been pursuing my former MD for my Leave Encashment (approximately 15 days, as all employees are entitled to it), Gratuity payouts, and the proposed hike from my last appraisal. I held a senior position and assisted her during all the major crises the company faced. Please advise if my demands are unreasonable or if there is another solution. The MD has categorically denied paying anything. Thank you in anticipation.
nathrao
Only a legal battle can help you. There is confusion whether you are a consultant or an employee? What proof of being an employee is there? Many questions will arise, and going legal after discussing with your advocate can help. Take legal advice and go to the Labour Officer of the area with available documents. Once you do this homework, then you will be in a better position to get gratuity/LE, etc. The basic issue is that you allowed confusion over employment status to cloud your case.
Babu Alexander
Consultant Designation and Job Responsibilities

The designation may be "consultant," but the most important aspect is the job responsibility. During your tenure as a consultant, if you have any documentary evidence proving that you were part of decision-making or disciplinary actions on staff members, sanctioned leave for subordinates, managed attendance registers, or signed on behalf of the management in any letters, emails, circulars, or authorized representations before any government office, then you may have the chance to claim your gratuity before the controlling authority under the Payment of Gratuity Act by providing evidence.
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