When an employee converts from full-time to part-time, their salary breakdown will reduce, affecting the PF and ESI contributions. I want to know whether the tenure of the employee will cease on the last day of full-time employment or if there can be a continuity of tenure in such a transition. It would be great if anyone could share the clause in labor law or PF law, etc., which specifies that the tenure can continue.
Regards,
From India, Bangalore
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Regards,
From India, Bangalore
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Statutory Benefits for Part-Time Employees
For all statutory benefits like gratuity, PF, eligibility for earned leave, bonus, etc., part-time employment has the same status as that of full-time employment. As such, a part-time employee completing 5 years of employment, even with part-time engagement on each day, will be entitled to gratuity. A part-time employee attending 30 days a year will be entitled to a bonus, or a part-time employee engaging even for a day will be entitled to PF/ESI.
Impact of Changing from Full-Time to Part-Time
Changing from the status of a full-time employee to a part-time employee will not make any difference with regard to service tenure. It makes a difference only with respect to wages, which will obviously be paid proportionately.
Regards,
Madhu.T.K
From India, Kannur
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4526For all statutory benefits like gratuity, PF, eligibility for earned leave, bonus, etc., part-time employment has the same status as that of full-time employment. As such, a part-time employee completing 5 years of employment, even with part-time engagement on each day, will be entitled to gratuity. A part-time employee attending 30 days a year will be entitled to a bonus, or a part-time employee engaging even for a day will be entitled to PF/ESI.
Impact of Changing from Full-Time to Part-Time
Changing from the status of a full-time employee to a part-time employee will not make any difference with regard to service tenure. It makes a difference only with respect to wages, which will obviously be paid proportionately.
Regards,
Madhu.T.K
From India, Kannur
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Thank you Sir. Would it be possible to quote the legal clause which says that full time to part time movement does not affect tenurity? I need to share this with my employer.
From India, Bangalore
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From India, Bangalore
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Mr. T.K. Madhu has replied correctly. Most of the laws applicable in this context do not differentiate between part-time and full-time status. In case the company has reissued a fresh appointment letter and changed the terms of employment, then a service break is applicable; else, it will be continuous employment.
From India, Mumbai
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From India, Mumbai
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