Gratuity Eligibility: On Payroll and Contractor - Total of 5 Years and 6 Months

tarun-lalsinghani
Hello Esteemed People, I have worked as a contractor for 1 year with a Client and 4 Years 6 months on Clients payroll, Total of 5 Years and 6 Months.
In this case, Will I be eligible for gratuity?
If Yes, What are the pointers I should bring into HR's notice? Please share your valuable opinion.
umakanthan53
Dear Tarun,
Your engagement with the said client as a contractor for an earlier period of a year is simply based on a contract for service creating no substantial employment relationship of employer and employee between the client and yourself. Therefore, it cannot be added to the later period of 4 years and 6 months you served under the same client as an employee by means of a contract of service so as to enable you to claim gratuity under the Payment of Gratuity Act, 1972. Only upon the completion of not less than 5 years of continuous service under the same employer as an employee, you are eligible to claim gratuity in case of any normal termination of your employment.
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