Am I Really Ineligible for Gratuity After 5 Years Due to FTC to Permanent Transition?

My tenure details are as follows:

Company: Thermax Babcock & Wilcox Energy Solutions Ltd
Employee no: T9459 (FTC), 0A13866 (Permanent)
Joining date: 16-Apr-2019
FTC to P: 01-Dec-2022
Last working day: 10-Sep-2024
Total Duration: 5 years, 04 months, 25 days

If you see, the duration in FTC is 3 years, 7 months, and 14 days, and the duration in the Permanent role is 1 year, 9 months, and 9 days.

This transition was a company decision, and I worked under the same management in the same role during the transition as well. Now, the company is stating that I am not eligible for gratuity as they hired me as a new employee in a permanent role. Therefore, the calculation for gratuity eligibility is not satisfied.

Can someone guide me on this topic?

Hi, you are eligible for gratuity as you have completed the stipulated period of 5 years. Your actual date of joining (DOJ) of 16-Apr-2019 should be considered for the purpose of gratuity. You can make a request for gratuity and submit Form I.

Appeal Process for Gratuity Denial

In case the employer refuses to pay gratuity, you can appeal before the Assistant Commissioner of Labour of your office jurisdiction. According to the Payment of Gratuity Act, 1972, an employer must pay an employee's gratuity within 30 days of the date it becomes payable. If the employer doesn't pay the gratuity on time, they must pay interest on the amount from the due date until the payment date.

Hi Sreejith, Prima facie, it appears you have a case. However, we need the following details before we can provide further suggestions:

Break Between FTC and Permanent Employment

Please let us know whether there was a break between your FTC and permanent employment. If yes, how many days? You mentioned the same management. Were there two different appointment orders issued? When your tenure ended, was it due to your own resignation, termination, or closure of the employment contract?

Terms and Conditions of the Contract

What are the terms and conditions of the contract in both arrangements as far as the tenure of service is relevant? Is there a separate dedicated gratuity fund or insurance for gratuity with LIC or any other agencies operated by your office?

Filing Gratuity Claim

Have you filed your claim Form No. "I"? In all fairness, you should get Form "L" from your office after filing Form I. If not, they should issue Form "M" (rejecting your claim/application). After receiving Form M from your office, you must appeal to your designated Labour Officer in Form "N" and follow the legal course. For guidance, go through the attached Gratuity Rules and act as soon as possible; a delay of a few months for filing your claim is no worry.

Please refer to your contract or appointment order to check if they mention anything about gratuity. Additionally, review your employment history to determine if there have been any breaks in service during the eligibility period. Mr. Laksminarayanan and Mr. Kumar have stated that gratuity is the employer's responsibility and should be provided within 30 days of resignation. If the management refuses to provide gratuity, you have the right to appeal to the controlling authority or labor commissioner within your office's jurisdiction.