Gratuity eligibility if I work in same company as CONTRACT hire and then as EMPLOYEE

Hi
I have one query on GRATUITY. In current company (Bangalore, Karnataka) where I am working, I will complete 5 years on 1st Jan 2024 but I would like to exit by 10th Nov 2023. On searching internet, I am getting conflicting views, can someone throw some correct light on this

1. In my current company I was on CONTRACT hire from 5th Nov 2018 to 31st Dec 2019 (I was given contract HIRE from 5th Nov 2018 to 5th Feb 2019 but they gave me a new contract of EMPLOYEE from 1st Jan 2019 and I accepted the same) . Then in the same company I became EMPLOYEE from 1st Jan 2019 and my last date is probably going to be 10 Nov 2023. Will I be eligible for GRATUITY (I am completing my 5 years if CONTRACT hire is also included)?

2. I heard about 240 day ruling by Honorable Madras and Honorable Kerala High Court for the fifth year, will this make me eligible for gratuity as I have already crossed 240 plus days as of now. Does this ruling of different state High Court apply for Karnataka state?

Can someone tell me if #1 and /or #2 will be applicable in my case for Gratuity?

Thanks
Sujit

To my opinion you are entitled for gratuity considering your contractual period as well as pay roll employees of the organization. Continuous Service under P G Act has not mentioned that an employee will be eligible for bonus if he is permanent employee. Nature of employment has nothing to do with payment of gratuity. Lord Krishna had 108 names but the person was one that is Krishna. Similarly one employee may be engaged as contractual, casual, temporary and permanent but the person is one.

S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in

As per Payment of Gratuity Act, those who have completed service of 5 yrs in the same company will be eligible for gratuity, but in your case, one year you were on contract basis which had certain terms and conditions so in the length of services that period will not be considered, hence you are not eligible for gratuity.

Sanjay Kumar Pandey
GM(HR)
Jai Balaji Group

Hi,

Combining Contractual +Regular rolls you had completed 5 years.

You had served for same Employer from 5th Nov 2018 to 10 Nov 2023 and hence Employer should consider contract period also as service period and should pay you Gratuity. Though the category of employment differs you had served on full time basis without any break in-between. Hope you have documentary evidence for your Contract/regular employment rolls . You can apply for Gratuity and in case of no response from employer you may appeal before Assistant Commissioner of Labour of your office jurisdiction.

Dear Sujit,

You are entitled to Gratuity. This is a case similar to the judgment of the Madras High Court in the matter of Superintending Engineer, Mettur Thermal Power Station, Mettur vs. Appellate Authority, Joint Commissioner of Labour, Coimbatore & Anr, 2012 LLR 1160. In this judgment, the contract employee was transferred from contractor rolls to the rolls of the power station and liability was shifted to the Principal Employer. But you continued on the rolls of the same employer.

Payment of Gratuity Act says, continuity of service, and you have continued the service of 5 years with the same employer irrespective of status of your employment.

On denial by the employer, if you approach the Controlling Authority, the case may go in your favour. You may also get interest for the delay.

Regards,

Dr Kamlesh Agrawal