jpp@panchmahalunion.coop
Dear Sir, If a person retired at the edge of 58 at X organisation, After retirement he was reappointed as a consultant and completed 8 years of services, is he eligible for gratuity after retirement? What are the consequences and is it legal?
From India, Gandhinagar
nathrao
3131

What were the terms and conditions of employment?
Were they similar to other similar employees?
If so employee would get gratuity.
Employer paying gratuity is never illegal even if not entitled.
Tax angle from employee side will be there

From India, Pune
umakanthan53
6018

Dear Jpp,
Semantics differences in certain terms always create confusion and "consultant" is one such a word now a days as it is interchangeably used in the sense as an on-roll designated employee in the hierarchy of an organization and as an external expert offering expert advice on demand. In the former, employment relationship arises from the contract of service and in the latter business relationship arises from the contract for service. Therefore, the accrual of employment benefits like gratuity is a matter dependent on the nature of the contract between the organization and the individual.

From India, Salem
Madhu.T.K
4246

If that 'consultant' has been reporting to the office at a certain time and remaining in the office for certain time, say, 8 hours, like any other employee, if he used to apply for leaves whenever he wants to take leave, has been granted increments in the 'fees' every year, then it is very easy to establish master servant relationship. Once the master serant relationship is established, gratuity will have to be paid if the post retirement period comprises of five years with each year having 240 days of paid days.
From India, Kannur
KK!HR
1534

As per Section 2(f) of the PGA 1972, employee means any person employed for wages, in any kind of work in or in connection with the work of the establishment, so irrespective of the name tag the post carries, the entitlement for gratuiity arises once the appointment crosses the five year threshold limit.
From India, Mumbai
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