Is Mr. X Eligible for Gratuity After 6 Years with Different Employers? Let's Clarify!

Eligibility of Gratuity for Contract Labor

The case is as follows: Mr. X is a contract employee working with ABC Company (Contractor).

1. Mr. X was deputed to one company (principal employer_1) and worked for 3 years (01-01-2001 to 31-12-2003).
2. The contractor then shifted Mr. X to another company (principal employer_2) where he worked for 3 years (01-01-2004 to 31-12-2006).

My question is: Is Mr. X eligible for gratuity or not? My confusion arises from the fact that he worked continuously for 6 years with different principal employers through the contractor. Please clarify.

Regards, Priyatham

Not Eligible because he did not complete 4.6 years in any single company. In Contract labor, Gratuity is called Service pay. If anything is wrong, please suggest.

CLRA or BOCW acts are specifically designed for contract laborers because their duties are not fixed, and their pay is typically a consolidated amount that includes all leaves, bonuses, and other incentives.

Dear Colleague,

Yes, he is eligible for gratuity. He has apparently completed more than 5 years with the same employer (the Contractor, who is his immediate Employer) though his stint with the two client employers is 3 years each.

Regards,
Vinayak Nagarkar
HR Consultant

Dear Priyatham,

The said contract employee is eligible for gratuity subject to proving continuity of service in his employment with the said contractor.

Shailesh Parikh
99 98 97 10 65
Vadodara

Dear Priyatham,

As per your statement, there is no discontinuation of services for the contract employee who was engaged from 01-01-2001 to 31-12-2006. Hence, undoubtedly, the contract employee is entitled to payment of gratuity.

Thank you.

Yes he is entitled for gratuìty from his real employer.
Varghese Mathew

The contract labor was an employee of the contractor with whom he had worked continuously for six years. He is eligible for gratuity from his contractor (i.e. immediate employer).

Sir,

In this regard, my query is:

X is a contract employee, and he has served the company for 6 years in the following way: During the 6-year tenure, he served 3.5 years through ABC Contractor and the remaining 3 years through XYZ Contractor. Is he eligible for gratuity? Please guide.

X is a contract employee, and he served the company for 6 years in the following way. During the 6-year tenure, he served 3.5 years through ABC Contractor and the remaining 3 years through XYZ Contractor. Is he eligible for gratuity?