My question: Are contractual employees - (fixed tenure followed by renewal) eligible for gratuity payment at the end of 5 years? Will contracts be considered as continuous employment?
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Dear PIYADEBOSE,
The nature or type of employment, whether permanent, temporary, contractual (e.g., FTC, etc.), is not at all relevant for determining the eligibility of an employee for gratuity under the Payment of Gratuity Act, 1972. Any Fixed Term Contract of Employment, if renewed consecutively and the employee renders continuous service of not less than 5 years under the same employer, then he is eligible for gratuity under the Act. Every time the contract is renewed, each expiration gets automatically extinguished.
From India, Salem
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6185The nature or type of employment, whether permanent, temporary, contractual (e.g., FTC, etc.), is not at all relevant for determining the eligibility of an employee for gratuity under the Payment of Gratuity Act, 1972. Any Fixed Term Contract of Employment, if renewed consecutively and the employee renders continuous service of not less than 5 years under the same employer, then he is eligible for gratuity under the Act. Every time the contract is renewed, each expiration gets automatically extinguished.
From India, Salem
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Dear Team,
Please check and confirm the eligibility of gratuity for contract employees, whether it will be paid by the principal employer or contractor. Are there any provisions that the principal employer will be liable to pay gratuity to contract employees.
From India, Bangalore
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Please check and confirm the eligibility of gratuity for contract employees, whether it will be paid by the principal employer or contractor. Are there any provisions that the principal employer will be liable to pay gratuity to contract employees.
From India, Bangalore
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx