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We had some laborers who were on a temporary basis earning daily wages, and no PF contribution was deducted. We do not have old records of such laborers. Later, we included some laborers on the staff list, filled out their PF nomination and declaration forms on that date, and started deducting their PF contribution. We have paid gratuity to these employees from the date they joined the PF scheme, but they are claiming gratuity from the old dates when they were temporary laborers. Please suggest from which date we are liable to pay gratuity.
From India, Lucknow
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Dear Member, Their demand is justified if they are continuously working with you. To avoid litigation you should pay the gratuity to these workers. R N KHOLA
From India, Delhi
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As suggested by R N Khola, the period of service when the workers were casually employed should be counted as part of their service. It was your sole responsibility to register them under EPF and ESI when they initially joined your organization, and your failure cannot be put on the workers. You should have at least given them ESI; if so, take that date as their date of joining. Otherwise, get the vouchers for wage payment and decide their dates of joining. In any case, the service of their daily rated wages system or casual employment should be considered for the final calculation of gratuity.
From India, Kannur
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rkn61
699

If they are made permanent and PF covered, on such date, without any break-in-service from the date of commencement of work on a temporary basis, it shall be construed as "continuous service." Their demand for gratuity from day one is reasonable and genuine. Therefore, please proceed with agreeing to their demand.
From India, Aizawl
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KK!HR
1655

Since you do not have records of the temporary service period, there is a genuine concern regarding the individual start date of employment. You cannot base the gratuity calculation on the basis of any date claimed by these laborers. So, ask them to produce whatever documents/evidence they have in support. Verify them and try to give maximum benefit.
From India, Mumbai
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Hi Joshi,

It's important to consult with a legal professional or labor expert who is familiar with the specific laws and regulations in your jurisdiction for precise advice.

In many jurisdictions, where the Provident Fund (PF) and Gratuity are regulated by statutory bodies, the liability for gratuity generally begins from the date an employee becomes eligible for the scheme. Here's a basic breakdown:

Temporary Laborers with No PF Contribution: Since there was no PF contribution for these temporary/daily wage laborers, they might not have been considered regular employees during that period. This may affect their eligibility for gratuity for that period.

When PF Contribution Started: Once these laborers were included on the staff list and PF contributions started, they likely became eligible for gratuity from that point onward.

Record Keeping: It's crucial to maintain clear records of when each employee became eligible for PF and gratuity. This documentation will be essential in case of any disputes or claims.

Consult with Legal Experts: Given the specific nature of labor laws and their interpretation, especially in situations like this, it is strongly recommended to consult with a legal expert or labor consultant. They will be able to provide advice based on the specific laws and regulations in your jurisdiction.

Communication and Documentation: It's important to communicate with the employees in question and explain the situation clearly. Provide them with the necessary documentation, such as their PF nomination and Declaration forms, to establish the start date of their eligibility for gratuity.

Consider Local Laws: Always consider the specific labor laws of your region. In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity. Laws can be complex, and interpretations can vary. Always seek advice from a qualified professional who is familiar with the labor laws in your jurisdiction.

Regards,

From India, Bangalore
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Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period.

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From United States, Salt Lake City
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