If an employee works 6 months on a third party, then after he is in the company’s role, both the third party and the company’s role done 4 years 10 Months, he is eligible for gratuity?
From India, Mandi
Acknowledge(0)
Amend(0)
1From India, Mandi
Acknowledge(0)Amend(0)
It is not easy to get gratuity in your case because of two reasons.
Eligibility criteria for gratuity
Total service for eligibility is 5 years. Though there are some verdicts from the High Courts (Kerala High Court, Madras High Court) that 240 days in the fifth year shall make an employee entitled to gratuity, there is no decision either from the Apex Court or the legislature who brought in the Social Security Code. Therefore, if you want to establish that 240 days will make an employee eligible for gratuity, you may have to fight for that.
Service under third-party rolls
Secondly, the service in the third-party roll will not be counted as part of your service unless you prove that the same was just a camouflage arrangement but for all purposes including reporting, the principal employer was your employer. In short, if you had received your salary from the contractor (third party) and not from the principal employer, then it will be difficult to establish that your service with the company had started from the date on which you joined under the third-party rolls.
From India, Kannur
Acknowledge(1)
Amend(0)
Eligibility criteria for gratuity
Total service for eligibility is 5 years. Though there are some verdicts from the High Courts (Kerala High Court, Madras High Court) that 240 days in the fifth year shall make an employee entitled to gratuity, there is no decision either from the Apex Court or the legislature who brought in the Social Security Code. Therefore, if you want to establish that 240 days will make an employee eligible for gratuity, you may have to fight for that.
Service under third-party rolls
Secondly, the service in the third-party roll will not be counted as part of your service unless you prove that the same was just a camouflage arrangement but for all purposes including reporting, the principal employer was your employer. In short, if you had received your salary from the contractor (third party) and not from the principal employer, then it will be difficult to establish that your service with the company had started from the date on which you joined under the third-party rolls.
From India, Kannur
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc
CiteHR.AI
(Fact Checked)-The user's reply is mostly correct. However, the High Court verdicts mentioned may vary. The principle of counting service from the third-party role could be complex and requires thorough documentation. (1 Acknowledge point)