Respected Seniors,

I am searching for the judgment in The Payment of Gratuity Act;

The Employee has worked in 3 - 4 different establishment where all the Owners are different but the place of work is same, Job of employee is same.

All the establishment are working as a Contractor for Principal Employer. Said all establishment are get closed at interval of 3 to 4 years

lets says'
1. A Firm start in Jan 2012 & closed in Dec 2015
2. B Firm Start in Jan 2016 & closed in Dec 2018
3. C Firm start in Feb 2019 & closed in Mar 2022
4. D Firm start in Apr 2022 & remain continue till date.

In such case my opinion is, employee is eligible for Gratuity.

Require Senior Views,


From India, Surat

If you can establish that these employers are one and the same, you can demand gratuity from the last employer where from you leave after the eligibility condition of five years' service. It is not that easy to win the issue but you have to establish that there has not been any termination from each of the employer establishment and joining in another and there has been financial integrality among these employers and opening one and closing the other one are just for name sake and not following the law.
From India, Kannur

The payment of gratuity is payable by the pay master,(the employer) not by the PE. The principal employer can not be the employer of workmen and employees engaged under the agencies, who are working in their establishment.
As per your posting, the employee has worked with different employers but didi not put the eligibility period of working. As the employee didn't complete the five years of working with any of the employers, for which he is not eligible for gratuity.
The only possibility available for the employee to prove before the authority that the contractor engagement is sham & camouflage or otherwise no scope.
The contractor establishments working with any PE vide the work order and each Work Order is regulated with time factors(duration), I don't feel any of the WO were issued for 60 month. The employment seized upon the end of WO or work or validity period of labour licence. Therefore, eligibility for Gratuity doesn't exist.

From India, Mumbai

Whether an employee is eligible for gratuity depends on the Payment of Gratuity Act, 1972. Usually, an employee needs to work continuously for at least five years with the same employer to qualify. However, if an employee works in different establishments, the key is whether these places are considered part of the same "establishment" under the Act. If they are, the time worked in all these places might be counted together for gratuity eligibility.

It's essential to note that the details can vary based on factors like the type of job and industry. Laws can also change, so it's a good idea to check the latest rules or consult with a legal expert for the most accurate information. Stay informed to ensure you're aware of any updates to the Payment of Gratuity Act or related regulations.

From India, Kolkata

Dear Experts,

Thank you so much for providing your views.

I am giving more clearance to my query

Let Say Employee Name as Rahul Dixit

Previously he was working with the establishment named ABC & Co for 3 years. Place of work of ABC & Co is lets say 1st Floor, Lajpath, New Delhi. Establishment is also registered under Factory Act & obtain Factory License.

After 3 years said employees was shift to DEF & Co. Said establishment has also obtain Factory License on above mentioned address & working as a Contractor for ABC & Co.

After 4 years said employee was transferred to GHI & Co. Said establishment has also obtain Factory License on above mentioned address & working as a Contractor for ABC & Co.

After 3 years said employee was transferred to JKL & Co. Said establishment has also obtain Factory License on above mentioned address & working as a Contractor for ABC & Co.

The designation of said employee is same in all establishment.

The place of working is also same of the said employee

All the establishment are engaged in same business

ABC & Co has help employee to open his bank account & start receiving Salary from said establishment as well as from other establishment also.

There is hardly break of 1 / 2 month during the transfer of the employee.

All the establishment has accepted that the employee has worked with them but not completed 5 years as mentioned in act.

All the establishment has submitted there reply in common by the common authorized person.

There is 1 judgement for the same, but as of now I can't able to recall.

Kindly help me in the said matter.

From India, Surat

Dear Experts, Further want to inform that the address of the all establishment is common.
From India, Surat

This is a sham contract arrangement. The Principal employer remain the same but the contractor changed and that also by keeping you working for all these years. The breaks while you were transferred from one principal employer to another is only artificial breaks and are irrelevant for gratuity entitlement. With these information you can approach the Controlling authority (Labour officials) and file a complaint.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.

Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR

All Copyright And Trademarks in Posts Held By Respective Owners.