Gratuity Payable Under Gratuity Act 1972

I am working for a pharama company for last 9 years on contractual basis. For the first 4.5 years I worked under a direct contract letter with the Company, the contract got renewed each time the date expired. After about 4.5 years they put me on a third party contract , and hired me as a depute. Now in this case I still work for the same company but throgh a contractor. Now here I have worked for about 4 years and 4 months. If I leave the job will I be elligible for Gratuity under payment of Gratuity act 1972, as I am not satisfying the 5 years of cont service clause. but if u consider my case the principle employer is same and the total service is 9 years

Dear --
Here in this case you does not seem to have work with the same employer for a continuous period of five years & therefore you are not entitled to have gratuity payment at this point time.

R.N.Khola

but if i worked for the same company throgh a direct contract ,and then throgh a third party contract, with no break in employment(for 9 years in total),am I not elligible for gratuity. Do you have some case laws as precedent to similar situation.Pls advice

Dear
This is to inform you that contractor & the direct employer both have separate entity under this Act. You are to complete five years with any of them.

R.N.Khola

but what if my principal employer kept me on a direct contract for over 4 years, and then asked me to then to work under a third party contract. Here the contract employees do not report to the contractor for functional reporting but to the employees of the organisation. only the pay roll is different and the contractor pays me salary, after getting the reimbursement from the company.I do not have a break in service, as I worked for the company from 5th october2000 to 31st July2005, under a direct contract and from 1st August 2005 till date for the same company but under a third party contract. It appears that I will loose my gratuity, for no fault of mine, since the change in the nature of contract was not at my will, but I was asked to do so, if I wanted to continiue on the job

Is there no case law that supports in favour of my contention to claim the Gratuity, either from the contractor or from principal employer?

- As mentioned by you the contract is renewed every time when it expired.

Is your contract period is of 1 year or on a project basis. In this case there is discontinuity in service.

- After completing 4.5 Yrs. they shifted to Third Party Contract, again they have dis-countinued your services.
As per payment of Gratuity Act - Continous service of 5 Yrs. is requied to get eligible for Gratuity. In your case & as mentioned by you. I could not see there is a continuity in the service.
For further clarification please ref. Payment of Gratuity Act.

Dear Premak,
I think the law states that if a person work with a parent company in contract for more than 365 days continuously he is liable to claim all the benefits of what the parent company is providing to him. Under abolition of contract labor act you are liable to claim that your company has to make you as the company employee. So if you want to sue the company you check with your local labor lawyer.

Initially when I was under direct contract they used to give me a six monthly contract. But there was no break in service till 4.5 years. Later when they shifted me to a third party contract they keep writing in my contract letter they mention that due to the extension of the project you have been employed for your contract period is extended till a till date. Here also the contract is continious.