Hi Seniors,
Please help me to resolve the below mentioned case with your valuable thoughts and also refer me some relevant judgements available regarding this.
One of our employee was on direct contract with us for 06 months, after the 06 months of contract, he worked with us on third party payroll for 03 years and after that he was absorbed as onroll employee of the company and worked for 2.6 years before leaving the company.
Now my query is whether this employee is eligible for Gratuity, please share your opinion and any valid documents/Judgements available with you.
Thanks,
Chatar Singh
From India
Please help me to resolve the below mentioned case with your valuable thoughts and also refer me some relevant judgements available regarding this.
One of our employee was on direct contract with us for 06 months, after the 06 months of contract, he worked with us on third party payroll for 03 years and after that he was absorbed as onroll employee of the company and worked for 2.6 years before leaving the company.
Now my query is whether this employee is eligible for Gratuity, please share your opinion and any valid documents/Judgements available with you.
Thanks,
Chatar Singh
From India
Hi,
There was no mention about in between breaks in the above mentioned the above periods.
As the employee worked with you on third party payroll for 03 years , he is not eligible for Gratuity.
While his initial stint with the company for .6 months & last employment period of 2.6 years is ok, 3 years on third party payroll stands distinct.
From India, Madras
951There was no mention about in between breaks in the above mentioned the above periods.
As the employee worked with you on third party payroll for 03 years , he is not eligible for Gratuity.
While his initial stint with the company for .6 months & last employment period of 2.6 years is ok, 3 years on third party payroll stands distinct.
From India, Madras
Initial service on direct contract whether it is on regular basis or Fixed Term Contract = 0-06 months
Subsequent service on third party pay roll ( Probably with his consent ) = 3 years
Service rendered after absorption as on-roll employee before leaving = 2 y and 6 m
Total service rendered in the organization = 6 years
Anyway, he has not completed the minimum qualifying service of 5 continuous years in any of the different modes of employment viz., FTC, Off-roll or On-roll.
Thus though the establishment is the same and the total service is 6 years, the intermittent changes in his modes of employment render him not eligible to stake a claim for gratuity under the Payment of Gratuity Act,1972 unless there is any specific clause for regularisation in the absorption orders to include the past service.
From India, Salem
Subsequent service on third party pay roll ( Probably with his consent ) = 3 years
Service rendered after absorption as on-roll employee before leaving = 2 y and 6 m
Total service rendered in the organization = 6 years
Anyway, he has not completed the minimum qualifying service of 5 continuous years in any of the different modes of employment viz., FTC, Off-roll or On-roll.
Thus though the establishment is the same and the total service is 6 years, the intermittent changes in his modes of employment render him not eligible to stake a claim for gratuity under the Payment of Gratuity Act,1972 unless there is any specific clause for regularisation in the absorption orders to include the past service.
From India, Salem
I appreciate the comments by Umakanthan Sir. But Sir, I feel that the act of the employer putting the employee under a third party roll is not a genuine attempt but the arrangement was sham only. If the employee could prove that during that period, he was supervised by the company employees, I feel that he will get gratuity considering the length of service. It is also interesting that after a gap of three years under a third party roll, the company had absorbed him under regular rolls. Don't you think that there was something which can make the contract employment of 3 years sham one?
From India, Kannur
From India, Kannur
The employee is eligible for the gratuity as because he has rendered 6 years service in your establishment.
There is nothing called third party pay roll.
If someone was working with some other paymaster, what prompted you to absorb in your company roll?
To have a better suggestion please provide the time line of the employee( 6 moth contract from to, third party from-to and on roll from- to).
From India, Mumbai
There is nothing called third party pay roll.
If someone was working with some other paymaster, what prompted you to absorb in your company roll?
To have a better suggestion please provide the time line of the employee( 6 moth contract from to, third party from-to and on roll from- to).
From India, Mumbai
I agree with you Madhu and at the outset such a concern arose in my mind too on reading the narrative, But, I preferred to answer the query as it is rather than reading in between the lines. That's why I added the caveat of regularisation of the different spells of service prior to the employee's absorption.
Generally, many questioners do not reveal the real story in its entirety prompting their questions. But, being outsiders, we do not know the actual reasons for such shuffling. In such a situation we have to believe that the arrangements being a gentlemen's agreement and the changes were with the active consideration and consent of the employee concerned though it can be termed as an unfair labor practice on the part of the employer.
After all, gratuity being a reward for a long and blemishless service in the same establishment to an employee and a statutory obligation on the part of the employer upon termination of employment, let good sense prevail over the employer in case of a disputed claim for gratuity or even otherwise!
From India, Salem
Generally, many questioners do not reveal the real story in its entirety prompting their questions. But, being outsiders, we do not know the actual reasons for such shuffling. In such a situation we have to believe that the arrangements being a gentlemen's agreement and the changes were with the active consideration and consent of the employee concerned though it can be termed as an unfair labor practice on the part of the employer.
After all, gratuity being a reward for a long and blemishless service in the same establishment to an employee and a statutory obligation on the part of the employer upon termination of employment, let good sense prevail over the employer in case of a disputed claim for gratuity or even otherwise!
From India, Salem
Dear Sir,
If the vendor changes and the worker remains the same and he has completed five years, will we give him gratuity or not? as a principal employer.
Pls suggest me.
Amod Kumar Singh
Manager - Hr
From India, Vadodara
If the vendor changes and the worker remains the same and he has completed five years, will we give him gratuity or not? as a principal employer.
Pls suggest me.
Amod Kumar Singh
Manager - Hr
From India, Vadodara
Mr Amod Kr Singh, ::
The act & rules say, if one extends five years of continuous service is eligible to get Gratuity on his exit from the employer.
The worker working under a contractor, then gratuity is payable by the contractor.Where contractor fails to discharge the payment then the liability fall upon Principal Employer.
It doesn't matter, if the workmen served over five years services in one establishment uninterrupted or without break of service is eligible for gratuity, no matter if vendors changed during his service period.
Ask all the vendors to pay under whom the workmen were engaged proportionately for the period of work. As a Principal Employer, you pay the amount to workmen and realised the amount from the bill of vendors. Hope it clarified your question.
From India, Mumbai
The act & rules say, if one extends five years of continuous service is eligible to get Gratuity on his exit from the employer.
The worker working under a contractor, then gratuity is payable by the contractor.Where contractor fails to discharge the payment then the liability fall upon Principal Employer.
It doesn't matter, if the workmen served over five years services in one establishment uninterrupted or without break of service is eligible for gratuity, no matter if vendors changed during his service period.
Ask all the vendors to pay under whom the workmen were engaged proportionately for the period of work. As a Principal Employer, you pay the amount to workmen and realised the amount from the bill of vendors. Hope it clarified your question.
From India, Mumbai
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