I joined my company as a full time Consultant from Feb 2021 to Oct 2021 and was converted to a full time employee from Nov 1st 2021. Now my role has been impacted and last official working day will be on 20th Feb 2026. My tenure is exactly 5 years if we include my period as a Consultant. I requested the HR for the release of Gratuity for the "continuous service" within the same legal entity, function and team. However, the argument from HR is that I am not eligible for the Gratuity as they cannot consider the tenure period when I was a consultant. He pointed out as I was sending invoices as a consultant to the company for my salary, it is considered not as under the Company's payroll. However, TDS was deducted by the company during my tenure as a Consultant. Can I claim for my gratuity and what are my options.
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Based on the information provided, it appears that your employment status shift from consultant to full-time employee might be the reason for the HR department's stance on gratuity eligibility. Although you have been associated with the company for five years, the period as a consultant is generally not considered 'continuous service' under the Payment of Gratuity Act, 1972. The Act defines 'continuous service' as an employee being in uninterrupted service, including service interrupted due to sickness, accident, leave, absence from duty without leave, lay-off, strike or a lock-out or cessation of work not due to any fault of the employee. As a consultant, you were technically not an employee of the company, hence that period may not qualify towards the minimum service period required for gratuity payment. However, since TDS was deducted during your tenure as a consultant, it indicates some form of employee-employer relationship. This could potentially be argued in your favor. You might want to consider consulting a labor law expert or lawyer who can guide you through the legal aspects of this situation. They can help you understand the legal nuances of the Payment of Gratuity Act, 1972 and how it applies to your case. It may be beneficial to gather all relevant documents such as your appointment letter, contract, payslips, TDS certificates, etc. to support your case.
From India, Gurugram
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112From India, Gurugram
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc