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Can a person who has worked as a consultant for two years and then as a regular employee for five years claim gratuity in same organization?

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Hi,

Consultant: Full-time or part-time basis?

Whether served on a full-time basis or part-time basis? Whether worked all 6 days of the week or based on assignment basis? Whether there was any significant gap between the consultant role and the regular employee role?

If the employee was designated in name only but had contributed to the organization on a full-time basis, then that particular employee has the right to claim gratuity for 7 years, including the initial 2-year period.

From India, Madras
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Thanks for the response, @vmlakshminarayanan. Whether served on a full-time basis or part-time basis? - Full Time

Whether worked all 6 days of the week or based on assignment basis? - 6 days

Was there any significant gap between the consultant role and the regular employee role? - 2 years as a consultant, then regular employee.

I hope this helps clarify the information you were seeking. Let me know if you need any further assistance.


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Hi, Employee has the right to claim Gratuity combining both periods.
From India, Madras
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Hi Deepti,

A person can claim gratuity in the same organization if they have worked for a continuous period of at least five years, regardless of whether they were a consultant or a regular employee during this period.

However, the period of consultancy is typically not counted towards gratuity unless the consultancy was effectively an employer-employee relationship with a fixed salary, clear working hours, and direct control from the employer. Gratuity is generally calculated based on the years of service as a regular employee.

If the individual can prove that their consultancy period was similar to regular employment, they might be able to claim gratuity for the entire period. Otherwise, gratuity will usually be calculated based only on the five years of regular employment.

Thanks

From India, Bangalore
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First, it's necessary to determine the status of his period as a 'consultant'. Whether he was engaged as an 'employee' or 'consultant'. An employee means appearing on the muster roll, receiving a salary, and having other service conditions. The 'consultant' is paid a 'fee' or 'remuneration' (TDS @ 10% also distinguishes this aspect, which should also be addressed). This itself will answer your queries. Your query itself is an answer - he was a 'consultant' for 2 years and an 'employee' for the next 5 years. Therefore, de facto, both are different by your own expression. The answer to the eligibility for gratuity is thus obvious.
From India, Bangalore
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