As per your posting, I am failed to understand of whom you are talking. Is the person is a Consultant or Employee? Gratuity is not applicable to a consultant but applicable to an employee.
An employee on fixed term employment is eligible for “Gratuity” even though not completed qualifying period at prorate basis for the service rendered.
Gazette notification of Amendment on Industrial Standing Orders is attached for reference.
From India, Mumbai
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654An employee on fixed term employment is eligible for “Gratuity” even though not completed qualifying period at prorate basis for the service rendered.
Gazette notification of Amendment on Industrial Standing Orders is attached for reference.
From India, Mumbai
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The above notification enables all employers to hire employees for fixed terms and is meant for the payment of gratuity. This notification allows employers with certified standing orders to include a specific category of workers, namely Fixed Term Contract Workers, for a fixed term. Initially, this option was only available to employers in the apparel manufacturing sector but has now been extended to any industry, allowing employers to hire and terminate employees as needed. To appease the Unions, clauses have been included such as ensuring payment of remuneration and other statutory contributions equal to those of permanent workers, as well as payment of gratuity if the worker's term is not renewed and they are terminated before completing 5 years. This scope is limited and applies only to establishments with standing orders.
From India, Kannur
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From India, Kannur
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Good evening Mr. Madhu, Thanks for prompt remark and shading additional light upon the topic.
From India, Mumbai
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From India, Mumbai
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Dear All,
Our organization is a school that comes under Shiksha Samiti or a trust, and we are hiring professional coaches in various fields on contracts. We need all of your advice on this, especially regarding gratuity as they work for 4 hours a day. Their contract can be made either as a consultant in sports or as a professional fee.
Thank you.
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Our organization is a school that comes under Shiksha Samiti or a trust, and we are hiring professional coaches in various fields on contracts. We need all of your advice on this, especially regarding gratuity as they work for 4 hours a day. Their contract can be made either as a consultant in sports or as a professional fee.
Thank you.
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(Fact Checked)-The employee may be eligible for gratuity after 5 years as continuous service includes a 1-month break. Contracts should align with labor laws. (1 Acknowledge point)
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This subject was discussed in length in various other threads also. A school has a curriculum, and sports are also included in it. Your students get trained in sports only as part of studies, but sports are not their primary objective. I don't think that you will take your children to the ground during March or examination is going on.
Now, like any other faculty member, a trainer is to be employed following the education rule of the state. This is to be followed even if you are an unaided school, i.e., a school that does not take financial assistance from the government. It is immaterial whether you employ him for the entire day of 8 hours or only for 4 hours a day. In these 4 hours, he has to follow a set of rules, time schedules, and follow a dress code, etc. In such circumstances, his status is just like a teacher. How can he be called a Consultant or Professional?
It is true if he comes every day and gives instructions to one or two of your teachers as to how to give physical education to the students. In such cases, the fees that he collects are professional charges. On the other hand, if he comes to your school at 9.30 am and gives training to the students as per a pre-designed schedule and leaves at 1.30 pm, he is just like an employee or a part-time employee. He should be paid a salary, be subjected to PF and ESI, and finally when he leaves the school (after rendering the qualifying service), the school pays him gratuity. Since everything is linked to the salary, which in turn is also linked to hours worked, whatever to pay will be lesser than that payable to full-time teachers.
From India, Kannur
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Now, like any other faculty member, a trainer is to be employed following the education rule of the state. This is to be followed even if you are an unaided school, i.e., a school that does not take financial assistance from the government. It is immaterial whether you employ him for the entire day of 8 hours or only for 4 hours a day. In these 4 hours, he has to follow a set of rules, time schedules, and follow a dress code, etc. In such circumstances, his status is just like a teacher. How can he be called a Consultant or Professional?
It is true if he comes every day and gives instructions to one or two of your teachers as to how to give physical education to the students. In such cases, the fees that he collects are professional charges. On the other hand, if he comes to your school at 9.30 am and gives training to the students as per a pre-designed schedule and leaves at 1.30 pm, he is just like an employee or a part-time employee. He should be paid a salary, be subjected to PF and ESI, and finally when he leaves the school (after rendering the qualifying service), the school pays him gratuity. Since everything is linked to the salary, which in turn is also linked to hours worked, whatever to pay will be lesser than that payable to full-time teachers.
From India, Kannur
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if he/she completed 4 years and 240 days , he / she is eligible for gratuity.
From India, Gurgaon
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From India, Gurgaon
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Dear All, At the end of every year his full n final settlement is being made, Will he still gets gratuity ?
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(Fact Checked)-The employee will still be eligible for gratuity after 5 years of continuous service, even with a 1-month gap between contracts. Full & final settlement doesn't affect gratuity entitlement. (1 Acknowledge point)
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Hi Rithveek,
You want to break the contract on a yearly basis and give a considerable break every year. You are also clearing FFS on a yearly basis to avoid statutory commitments like gratuity. But again, you are seeking the services of the same employee. Why? Is it due to a lack of qualified candidates for the said position, or is the company happy with the services of the said employee? Instead, you can regularize the employment of the said employee and give him all statutory benefits like PF, ESI, Bonus, Gratuity, etc., so that the morale of the employee will also be very high, and you can expect more performance.
From India, Madras
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You want to break the contract on a yearly basis and give a considerable break every year. You are also clearing FFS on a yearly basis to avoid statutory commitments like gratuity. But again, you are seeking the services of the same employee. Why? Is it due to a lack of qualified candidates for the said position, or is the company happy with the services of the said employee? Instead, you can regularize the employment of the said employee and give him all statutory benefits like PF, ESI, Bonus, Gratuity, etc., so that the morale of the employee will also be very high, and you can expect more performance.
From India, Madras
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(Fact Checked)-The user's response is correct. It emphasizes the importance of regularizing employment to provide statutory benefits and boost employee morale. (1 Acknowledge point)
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If he has a service of at least 5 years, he will get gratuity.
From India, Kannur
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From India, Kannur
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Dear Rithveek,
When I have gone through all answers of Mr. Madhu, this question arises in my mind: when an employee has received and accepted Full and Final Settlement every time, how can we consider that he is in continuous service? Once he has signed the Full and Final settlement and received the money via cheque, how can he prove that he is in continuous service...? The acceptance of Full and Final settlement signifies the end of the Employer and Employee relationship in my opinion.
I request Mr. Madhu to please clarify.
Regards,
Manish Bali
From India, Delhi
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When I have gone through all answers of Mr. Madhu, this question arises in my mind: when an employee has received and accepted Full and Final Settlement every time, how can we consider that he is in continuous service? Once he has signed the Full and Final settlement and received the money via cheque, how can he prove that he is in continuous service...? The acceptance of Full and Final settlement signifies the end of the Employer and Employee relationship in my opinion.
I request Mr. Madhu to please clarify.
Regards,
Manish Bali
From India, Delhi
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(Fact Checked)-The user reply is correct. The distinction between consultants and employees regarding gratuity eligibility is accurate. The mention of prorate basis for fixed-term employment aligns with relevant laws. (1 Acknowledge point)