Whether outsourced employees are eligible for gratuity

practice

Hi..

I want to know whether the contractual / outsourced employees who are employed in a single organisation (Parent Company) for more than five years are eligible for gratuity in case of resignation ?

Their contractual period are being reviewed every year.

Can the Principle employeer or the agent employer (Manpower Consultancy) evade the gratuity clause.

Pls note no mention of Gratuity or superannuation is mentioned in the joining letter.

Is there any other remedy for them to put up their greivances in case of denial by the Principal employer or the agent employer?

 
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FIN

Even if no mention of Gratuity is made in appointment letter if Payment of Gratuity Act, 1972 applies to establishment and employees are eligible then Gratuity is to be paid.

 
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FIN

 

Go thru; Payment of Gratuity Act, 1972: Sec 1(3)(3A)

http://www.labour.nic.in/sites/default/files/ThePaymentofGratuityAct1972.pdf

Apparently there has been NO break in employment from DOJ-LWD, as per your post.

However you should Confirm!

 
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FIN

Go thru; Payment of Gratuity Act, 1972: Sec 2(e),4

 

 
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FIN

 

The concerned employee(s) may submit the FormI to good offices of appointing authority/MD/CEO of employer ( Manpower Consultancy), under proper acknowledgment/POD and mention that ‘Notice of Determination of Gratuity’ and payment has not been supplied despite representations in office/by phone/email/letter etc on dated……………………to Mr/Ms…………  

 

Has any declinature in writing is supplied by employer ( Manpower Consultancy)?

Confirm!

 
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practice

No Sir. The manpower consultancy while renewing the contract on yearly basis have intentionally put a single day breakage in the contract which has been noticed lately. when asked about the reason they denied to answer. this is what troubling the most. Again, in this particular case the Principal employer ( Central Govt PSU ) being unchaged for years, the manpower agency got changed fequently. As the terms and conditions did not matched with the Principale employer they were replaced by another Manpower agency keeping the actual employee same in their position for years.

Tehrefore if inthe given circumstances if any employee choose to resign he / she has to mark the resignation letter to the Principal employer as well as the Manpower agency. Then who is going to bear the burden to gratuity paymet here? Can the Principal employer push the ball in the court of the Manpower agency ? and Can the Manpower agency avoid the responsibilty citing the clause of noncontinuity of service as there have been an intentional breakage in the contract letter.

 
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FIN

Originally posted by : sumana
No Sir. The manpower consultancy while renewing the contract on yearly basis have intentionally put a single day breakage in the contract which has been noticed lately. when asked about the reason they denied to answer. this is what troubling the most. Again, in this particular case the Principal employer ( Central Govt PSU ) being unchaged for years, the manpower agency got changed fequently. As the terms and conditions did not matched with the Principale employer they were replaced by another Manpower agency keeping the actual employee same in their position for years.

Tehrefore if inthe given circumstances if any employee choose to resign he / she has to mark the resignation letter to the Principal employer as well as the Manpower agency. Then who is going to bear the burden to gratuity paymet here? Can the Principal employer push the ball in the court of the Manpower agency ? and Can the Manpower agency avoid the responsibilty citing the clause of noncontinuity of service as there have been an intentional breakage in the contract letter.

 

"the manpower agency got changed fequently."

 

Who communicated the change? PSU?

 

Or employee was asked to resign (in writing) each year?

Who asked to resign (in writing) each year?

 

Did employee resign each year?

Was resignation accepted each year?

 

 

 

 
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FIN

"if any employee choose to resign he / she has to mark the resignation letter to the Principal employer as well as the Manpower agency."

Is it communicated in writing to all employee that employee has to tender resigantion to PSU?

If yes attach the copy?

Does PSU communicate acceptance of resigantion, in writing?

 

 

 
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practice

in reply to your first Question :

The PSU  is not giving any document to the employee concerned for he change of the agency. In fact these matters are confidential. Teh employees are physically and verbally been told about hte change of the consultancy by the Principle employer i.e. the PSU. And after that the documentation part is being handled by the PSU with the Manpower agency. Then a new joining letter is being issued to the employees wherein stating that the employee concenrned is deputed to the PSU in the designation of so and so............

Therefore in every joining letter it is written : the employees is being deputed to the PSU (name of athe Principal employer). this is one valid point to prove the continuity of the service despite of the breakage caused by the change in  manpower agency.

 

In reply to your second question of resignation, i am not aware of that. But in the event of resignation it is certainly required to put paper to the Principle employer as well as the Manpower agency as the work station of the employee is the place or the office of the Peincipal employer / PSU. In the event of any sanction of leave, leave application is to be written to the Princpal employer / PSU.

Therefore on the above light of facts, when the employee is resigning, its the duty of the Principle employer to accept the resignation and release the employee in writing.

 
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FIN

“In the event of any sanction of leave, leave application is to be written to the Principal employer / PSU.”

Is it stated in joining letter that leave application is to be made to PSU?

Does PSU provide leave application forms/formats?

Does PSU provide written sanction/declinature of leave?

 
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