Gratuity entitlement - The contractor terminates the contract at the end of 4 years and 6 months

The contractor terminates the contract at the end of 4 years and 6 months. The Principal employer has been paying gratuity to the contractor in respect of outsourced employees every month as part of the bill. Is there any way for the employees to claim the amount? It is not the fault of the employees that they could not complete 4 years and 240 days to be come eligible for gratuity

As it stands now, there is a shortfall in gratuity eligibility. Is the contractor going to reappoint you after some time. In that case, if you are completing 240 days of service in this period 12 months, you have a valid claim to gratuity.

If the Project and your job are continuing, then you can make a complaint to the Labour Officer of the local area against illegal termination, unfair labour practice and make a claim for gratuity too.

If the Gratuity is claimed by the contractor every month in the bill and reimbursed by the PRINCIPAL EMPLOYER without verifying actual payment or not then it is the foolishness of the Principal Employer who is wrongly paying the contractor without caring for the welfare of the workers. If the workers are having proof of payment of gratuity amount every month, then the terminated workers should file case before the Controlling Authority under Payment of Gratuity Act i.e. Assistant Labour Commissioner having jurisdiction and plead the case with proper documentary evidence. The Authoirty may direct contractor to pay gratuity amount which is paid to him by the PE.

True! There is negligence on the part of the Principal Employer. PE need to check what contractor is paying to his workmen regularly and certify the same as per Act. However, for the failure of PE, workers should not lose their amounts which were paid to contractor. The workers can approach controlling authority and PE should support them to get their dues by providing required documents etc., morally though not legally.