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Anurag Sharma   29 June 2019

Payment of Retrenchment in lieu of Gratuity to contractual workers / employees

please clarify:
we are deploying employees on purely one year contract and we pay them all like monthly salary as per the notification of Govt. also PF, ESIC, BONUS and Retrenchment benefits also at the end of contract.
after completion on contract with disposal of liability with respect to payment of statutory components.
again we issue the fresh employment for a contract of one year and paying the same as mentioned above.
Now, the maximum nos employees have completed 5 years .
Shall we liable to pay Gratuity to the above contractual employees. Whereas, we have paid Retrenchment benefit in lieu of Gratuity.
please clarify...


Learning

 1 Replies

P. Venu (Advocate)     03 July 2019

Obviously, you have devised a sham arrangement to evade payment of grauity. Law does not contemplate evading welfare measures by taking law in their hands,


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