Gratuity Payment for Contractual Employees
A contractor appointed 15 staff members under his payroll and worked for almost 10 years with the same principal employer. The principal employer then took all the contractual staff into the direct payroll of the company after 10 years of service under the contractor. The newly included employees have been continuing with the same employer for more than 7 years after their inclusion in the direct payroll.
The contractor did not settle any statutory payments like gratuity, nor was the contractor directed to settle the dues at the time of the takeover. The question is, if any such newly included employee claims their due, how many years of gratuity should be paid? Should it be only 7 years with the present employer, or 10+7 years including the time with the contractor?
From India, Kolkata
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9A contractor appointed 15 staff members under his payroll and worked for almost 10 years with the same principal employer. The principal employer then took all the contractual staff into the direct payroll of the company after 10 years of service under the contractor. The newly included employees have been continuing with the same employer for more than 7 years after their inclusion in the direct payroll.
The contractor did not settle any statutory payments like gratuity, nor was the contractor directed to settle the dues at the time of the takeover. The question is, if any such newly included employee claims their due, how many years of gratuity should be paid? Should it be only 7 years with the present employer, or 10+7 years including the time with the contractor?
From India, Kolkata
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Contract employee & Principal employer 2017.pdf
Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx