Gratuity Dilemma: Are We Required to Pay with 9 Full-Time and 1 Part-Time Employee?

In our company, we were 9 employees and one part-time employee. Is the employer eligible to pay gratuity? However, the part-time employee is not signing the register. In that case, what should we do?

Hi Nandhu, you recognized the 10th person as an employee and possibly included them in your payroll as well. Therefore, you are reaching a 10-employee firm, and thus the act is applicable. If the part-timer is coming regularly, i.e., hours are the same for each day, or if they are coming a few days in a week, then he/she is also eligible for gratuity. Please refer to the definition of an employee under gratuity; it is clearly defined that part-time employees are also eligible for payment of gratuity. However, other stipulations under the act, including completion of 5 years of 'continuous service,' etc., are applicable for 'part-time employees' as well. You may read more in this link - https://www.citehr.com/583399-gratui...-employee.html

(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company, or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical, or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].

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I have one more question. We asked about our gratuity, but the employer said that she is a consultant. However, when we initially inquired about our gratuity, she was a part-time employee. After we demanded our gratuity, they suddenly changed her designation to consultant with a predate. We do not have any records of her signing in a register or any documentation to prove her employment status. Despite this, she receives a monthly fixed salary that is credited to her bank account, but they do not provide any payslips. In this situation, is there any way to prove that she is an employee?

Thank you.