Applicability of Payment of Gratuity Act to Contract Labor

This is Bharti.. I've just join this forum.. i've few requests to make.. I worked as a teacher in kindergarten section of full fledge SSC school for 20 yrs.. 1988-2008. i resigned from my job with couple of other collegues. one completed about 7 yrs as a clerck in school and the other about 8 yrs as a KG teacher. friends of mine have posted them a request along with the copy of Gratuity act but theres no response from the management of the school. verbally we get the massage that act does not show the word school is liable to pay gratuity. it seem if u resign from the job u resign from incentives.. we dont find any way out of this but to forgo our rights.. can any one pl. help

Dear Paresh Bhai..
Could you pl. reply to my queiry.. Given to understand the Gratuity Act 1972.. person working in railways, shops , factories, mines etc etc are eligible for gratuity after completing min 5yrs of service. I worked in a school in kindergarten section over 20 years,I resigned from the post of teacher and my principal argues there is now word of school mentioned in an act so I'm not eligible for the same. Though my collegues who resigned got their gratuities, but to me she says it was a mistake made earlier so the management is not going to repeat the mistake again by releasing my gratuity. Also She argues on the point saying if u have resigned , you have resigned from your incentives..how far is the possibility of me getting my gratuity.. if you could help me I'll be obliged.. also if you could reply to me on I'll appreciate.. Kindly help me to get my dues.

Dear

It is hereby informed that teacher is not an employee according to the definition as laid down under section 2(e) of the Payment of Gratuity Act,1972 & therefore you are not entitled to any amount of gratuity under this Act.

Regards,
R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Dear Mr. Khola,
Our school has already given gratuity to other collegues of mine. also i ask for gratuity as my school collects Rs 1000/- for every new admission towards teacher's gratuity fund.. how come I'm not entitled.. Pl. can you guide me.

Dear BG,

Then in my opinion you should approach the hon'ble civil court for getting proper remedy. First serve a legal notice on the management through a civil advocate.

Regards,
R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

Thank You Mr. Khola... for suggestions....

Dear Mr. Cyril / Arun/ Paresh

Your qoutes are very good and useful. I would like to get clarification about some more points.

1. It is understood that if we employ contract persons continuously for 5 years, they shall become eligible for gratuity. But what if they are served with contract termination letters every year ( ie; on completion of 12 months).

It is been noticed that certain organisations engage persons on contract for only 11 months. But these 11 months also cross the 240 days criteria. Then is there any use of restricting the contract to 11 months? Also will it work if a break in service is given for 2 or 3 days?

2. Some companies have a practice of engaging people for 6 months then give a break of 3 days( 3 days they are not allowed to work) and then they are taken back and will work for 1 year . I think this will surely prevent eligibility of gratuity. In this case they engage people only for 4 years. Since they are restricting the total years to 4 , we need to think that even if the contract is of 6 months completion of 5 years is areal matter. am I correct?

In such cases is it necessary to issue contract letters or attendance registers alone is enough to prove that employees are not in continuous service of 1 year?

3. Another point is that in case of death or disablement of an employee, 5 years continuous service is not necessary. Then what is the minimum requirement? Shouldn't he complete 1 year continuous service?


Also could any of you cite any court orders of the case ( court direction to pay gratuity to contract employee) which Mr. Cyril has mentioned.



Thank You,
Seema T.K.

Dear Mr. Cyril / Arun/ Paresh

Your qoutes are very good and useful. I would like to get clarification about some more points.

1. It is understood that if we employ contract persons continuously for 5 years, they shall become eligible for gratuity. But what if they are served with contract termination letters every year ( ie; on completion of 12 months).

It is been noticed that certain organisations engage persons on contract for only 11 months. But these 11 months also cross the 240 days criteria. Then is there any use of restricting the contract to 11 months? Also will it work if a break in service is given for 2 or 3 days?

2. Some companies have a practice of engaging people for 6 months then give a break of 3 days( 3 days they are not allowed to work) and then they are taken back and will work for 1 year . I think this will surely prevent eligibility of gratuity. In this case they engage people only for 4 years. Since they are restricting the total years to 4 , we need to think that even if the contract is of 6 months completion of 5 years is areal matter. am I correct?

In such cases is it necessary to issue contract letters or attendance registers alone is enough to prove that employees are not in continuous service of 1 year?

3. Another point is that in case of death or disablement of an employee, 5 years continuous service is not necessary. Then what is the minimum requirement? Shouldn't he complete 1 year continuous service?


Also could any of you cite any court orders of the case ( court direction to pay gratuity to contract employee) which Mr. Cyril has mentioned.



Thank You,
Seema T.K.