Gratuity

GERARD FERNANDES (Querist) 28 September 2015 This query is : Resolved
Good morning

I seek advice on gratuity. I work with a Pvt Ltd company and have been in continuous service since Sep 2010.

The initial offer letter has the designation as Consultant and the contract has been renewed on time without any break in service

I get benefits like leave (30 days per annum) and the Sat/Sun weekly off and am dedicated to work in this company.

Please advice if I am eligible for Gratuity as i do not have any savings like Provident Fund etc.

Also since I get paid a fee how will the basic be determined. What will the calculation be ?

I appreciate your assistance and help

Thank You
G.Fernandes

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VIJAY K. TEOTIA (Expert) 28 September 2015
From your query it appears that you are not an employee of the company. You are working as a consultant on contractual basis. It is not clear whether your appointment is one time or renewed every year. If this is the facts than you are not entitled to gratuity. The gratuity is payable to employees only.

GERARD FERNANDES (Querist) 28 September 2015
Dear Sir

My contract is renewed every year. I am as good as a full time employee managing an entire function with staff reporting to me.

I was also told by another Consultant that Supreme Court has recently passed a judgement that irrespective of designation, if there is continous service then one is eleigible. I have not seen any evidence of the same.

Please advice.

Thanks
G. Fernandes

Rajendra K Goyal (Expert) 28 September 2015
From the facts, it seems you were not full time employee. However consult local labor law consultant, show him all the documents and discuss.

Kumar Doab (Expert) 28 September 2015
If he was retained as ‘Consultant/Retainer’ on professional Fees/honorarium, the company might be denying due to this nomenclature and reason.

The amount paid to him in return for his services might be taken/accepted as salary/wages whether it is termed professional Fees/honorarium.

If the consultant is full time and worked LIKE AN EMPLOYEE, he may have his chances.

You may go thru:

http://www.lawyersclubindia.com/forum/Employees-on-retainer-ship-consultants-eligible-for-gratuity-68331.asp#.UtPzF9IW1MA

You may consult your able labor Law Consultant/Service Matters lawyer/Law Firm with copies of all documents on record and give inputs in person and understand merits,options and remedies, if any, that are possible in your case.