An employee works on a fixed-term contract of 2 years and is automatically terminated at the end of the contract. He joins afresh after 8 months as a permanent employee and has worked for 4 years. Is he entitled to gratuity? What are the other things he may be entitled to?
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The employee in question may be entitled to gratuity based on the total number of years he has worked, including both the fixed-term contract period and the subsequent permanent employment period. In many jurisdictions, gratuity is calculated based on the total duration of employment.
Apart from gratuity, the employee may also be entitled to other benefits such as provident fund contributions, health insurance coverage, paid time off (such as annual leave and sick leave), and any other benefits stipulated in the company's policies or applicable labor laws.
It is important for the employer to review the specific terms of employment, relevant labor laws, and company policies to determine the entitlements of the employee in this scenario accurately. Consulting with HR professionals or legal experts can provide further clarity on the employee's entitlements in such situations.
From India, Bengaluru
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The employee in question may be entitled to gratuity based on the total number of years he has worked, including both the fixed-term contract period and the subsequent permanent employment period. In many jurisdictions, gratuity is calculated based on the total duration of employment.
Apart from gratuity, the employee may also be entitled to other benefits such as provident fund contributions, health insurance coverage, paid time off (such as annual leave and sick leave), and any other benefits stipulated in the company's policies or applicable labor laws.
It is important for the employer to review the specific terms of employment, relevant labor laws, and company policies to determine the entitlements of the employee in this scenario accurately. Consulting with HR professionals or legal experts can provide further clarity on the employee's entitlements in such situations.
From India, Bengaluru
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The employee's tenure starting after the lapse of 8 months as a regular employee is a separate and fresh innings of service under the same employer. Therefore, if his service gets terminated just after 4 years, that is before completing 240 days of service in the fourth year either on his own or otherwise, he is not eligible for statutory gratuity. The other terminal benefit in case of such an exit on his own would be only the encashment of EL, if any at his credit.
From India, Salem
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From India, Salem
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I may add,
You have not mentioned whether he is terminated from service, resigned, or still in service. For what purpose do you require the clarifications with respect to his entitlements?
The break of 8 months between the FTC and the permanent employment does not constitute 'continuous service' for combining 2 + 4 years of 'continuous service' to be eligible for gratuity, which requires a minimum of 5 years of continuous service. Additionally, if he is being separated, and if you wish to disregard the 8-month break and combine 2 + 4 years for paying some ex-gratia (under any name you choose), as a reward, I will have no objection. It's at your discretion.
From India, Bangalore
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You have not mentioned whether he is terminated from service, resigned, or still in service. For what purpose do you require the clarifications with respect to his entitlements?
The break of 8 months between the FTC and the permanent employment does not constitute 'continuous service' for combining 2 + 4 years of 'continuous service' to be eligible for gratuity, which requires a minimum of 5 years of continuous service. Additionally, if he is being separated, and if you wish to disregard the 8-month break and combine 2 + 4 years for paying some ex-gratia (under any name you choose), as a reward, I will have no objection. It's at your discretion.
From India, Bangalore
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He has resigned from duty. The company is asking me to create FnF, and thus I was asking if he was terminated, does that change anything?
Can you also help me with what documents are required for FnF? Is FnF and a resignation letter sufficient, or do I need to add any other documents?
From India, Bengaluru
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Can you also help me with what documents are required for FnF? Is FnF and a resignation letter sufficient, or do I need to add any other documents?
From India, Bengaluru
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If that's his service status, then Mr. Umakanthan already clarified regarding entitlement. And no gratuity is accrued. Any notice or notice pay is involved?
If termination occurs, then you have to consider payment of Termination compensation at 15 days salary for every completed year of service, to be fair enough (even if he is not covered under the ID Act.). If possible, gratuity as well.
Plus leave encashment, unpaid salary/bonus, or ex-gratia, if any, in any case.
EPF & EPS settlement (if no transfer via Form 11 is involved). How old is he? Has he crossed 58 years?
Is there any recovery for Co advances like vehicle loan, House building loan, etc.? Check that.
Retrieval of company's assets like laptop, mobile phone, vehicle, documents, data storage devices, books/files, documents, Company Quarters, and furniture.
Check for any bank loan endorsed by the Company (as surety/2nd/co-obligant). And any departmental inquiry pending.
Obtain No due certificate from all departments.
Prepare an Experience & Relieving letter, a detailed report of handing over & taking over charge (jointly to be signed by a person coming into his shoes), and a checklist of assignments completed, in the pipeline, to be pursued mentioning the status, contact persons.
Better prepare a complete checklist before processing & submission.
From India, Bangalore
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If termination occurs, then you have to consider payment of Termination compensation at 15 days salary for every completed year of service, to be fair enough (even if he is not covered under the ID Act.). If possible, gratuity as well.
Plus leave encashment, unpaid salary/bonus, or ex-gratia, if any, in any case.
EPF & EPS settlement (if no transfer via Form 11 is involved). How old is he? Has he crossed 58 years?
Is there any recovery for Co advances like vehicle loan, House building loan, etc.? Check that.
Retrieval of company's assets like laptop, mobile phone, vehicle, documents, data storage devices, books/files, documents, Company Quarters, and furniture.
Check for any bank loan endorsed by the Company (as surety/2nd/co-obligant). And any departmental inquiry pending.
Obtain No due certificate from all departments.
Prepare an Experience & Relieving letter, a detailed report of handing over & taking over charge (jointly to be signed by a person coming into his shoes), and a checklist of assignments completed, in the pipeline, to be pursued mentioning the status, contact persons.
Better prepare a complete checklist before processing & submission.
From India, Bangalore
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Mettur Beardsell Ltd Vs RLC (Cent) & otrs 1998 LLR 1072 about Gratuity Entitlement.pdf
Gratuity Form I.doc