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Vijaykumar (Legal Offier)     23 August 2014

Payment of gratuity to contract employees

Hello everyone, 

I have query regarding payment of gratuity to the employees on contract. I understand any employee who has completed 5 years of uninterrupted service is eligible for gratuity. Does that include the employees hired on contract? My query is regarding the contract employees who are employed on contract of 1 year or 2 years. Upon expiry of the contracts the same have been renewed many times. So the employees are now associated with establishment for more than 5 years now. Does the period between the date of expiry and date of renewal of contract is considered as break of service? Does such employees are to be considered into service uninterrupted and are eligible for gratuity? Any references and case laws will be highly appreciated.

Thank you.. 

Vijaykumar



Learning

 6 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     23 August 2014

Contract employees also eligible for grautity. see this defination.

To understand this the definition of Employee in the Gratuity Act under Section 2 (e) needs to be seen::

e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied,and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.

Kumar Doab (FIN)     01 September 2014

The law may render it as artificial break created to dodge/circumvent the Payment of Gratuity.

It is just @ 15 days Basic+DA/year....................................and peanuts for employers/establishments.................

The penalty and punishment with imprisionment to 'Whoever'...........................as defined in Sec:9 of the Act may be looked into...........................and also the judgments on 'Artificial Breaks'....................

The Unions/Trade Unions do not spare such instances and this would be rather meritorious opportunity for them........................

Employer may become famous as' Violator ' of rights of employees................... 

Pradeep (1)     01 February 2015

Wish all my seniors a very happy new year. I want to know certain clarification about payment of gratuity. My question is that whether casual or badli workers,who have completed uninterrupted service and retired from the service on 31.01.15 are entitled for gratuity payment. from the date of their appointment as casual/badli or from the date of their regularisation.

kindly help me in this regard as gratuity has been made taking into a/c from the period of their regularisation and not from the date of their appointment as casual/badli.

Kumar Doab (FIN)     02 February 2015

@ Pradeep,

 

You have posted many specific queries on payment of Gratuity and responded in affirmative to the suggestion of experts..................

 

e.g;

 

Entitlement to Gratuity: Forfeiture:::

 

https://www.lawyersclubindia.com/experts/entitlement-of-gratuity-452536.asp#.VM9kgy2qr5Y

 

and thus have indicated that you would want to dispose the matter and not complicate it.The resolution to this query is also straightforward and simple.

 

 

 

 

1.      The daily worker, casual worker, piece rated worker are eligible for Gratuity and there is provision for determination and payment of gratuity to such workers in the:

 Payment of Gratuity Act:1972: Sec: 2A(3),4(2)

This has also been clarified by judgments by courts of law..

 

2. Jharkhand High Court
Ms Mmtc Mica Division Minerals And ... vs Sri Sajjan Kumar Bhudolia And Ors on 22 April, 2014

 This judgment answers your specific query and makes the employee eligible from DOJ and not date of regularization..

 

3. All employees, except apprentices, are entitled to gratuity

 

Madras High Court

S. Arunachalam vs The Managing Director, Southern ... on 24 August, 2001

https://indiankanoon.org/doc/1975612/

 

 

4. In the instant case posted by you, you have admitted that these employees have rendered uninterrupted service.

5. The Sec;9 provides for penalty Rs.20000/, punishment with jail time to ‘ANYONE’ that contravenes the provisions of the Act and avoids to pay Gratuity…….

 

You may dispose the matter by making the payment of Gratuity to eligible employees.


Attached File : 876415016 casual daily rated workers eleigible for gratuity.doc, 876415016 all employees except apprentice eligible for gratuity.doc downloaded: 385 times

mukesh (oa)     09 April 2015

Dear Sir,

I have query regarding Confirmation of the staff.
I am Mukesh working in a Private school located in Haryana since 2008 on a probation basis for one year on a consolidated salary . But my employer not confirmed me till date after my several reminder.

Kindly help me in this regard

Kumar Doab (FIN)     09 April 2015

You are recruited on a FTC or against a regular post?

 

What is the probation period and language of clause on Probation/Confirmation (verbatim) stated in appointment letter issued to you?

 

If the max. probation period is say 2Y then you may be deemed to be confirmed.

YOu may consult an able Labor Law Consultant/Service Matters Lawyer and show all docs on record.


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