Labour Laws & Ir
Hr Executive

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Good Morning Seniors,

I have a query in which I need your help...

If an EE join a company on 6 months Contract basis and worked in that company 5 years including contract period, then is that EE would be eligible for Gratuity. Also if he/she would resign from that company then total work experience of that EE in the company will include the contract period or exclude?

Waiting for reply…

Thank you,

Hi Suman,
The gratuity would not be applicable for his contract tenure , it would be applicable only from his regularization period.
Regarding the experience the employee can include his/her contract period.
Please revert with suggestions .
Thanks ,
Augustin. P

Hi Augustin,
Thank you for your valuable reply. For Gratuity, it is clear to me that contract period will not include.
But for experience letter, can employer refuse to include the contract period? Is this depends on Employer to Employer or it would be same for all Employers?
Is there any standard policy regarding all this?

Dear Suman,
If EE have worked with you on contract basis for six months & then continuously completed five years with your company this employee will be eligible to receive gratuity. If he was working with contractor on contractual employment for six month & thereafter join your company then he/she is not eligible to have gratuity from your company. Same is the position in issue of experience certificate. If worked continuously with your company then you are to grant this certificate including contract period.


Thank you Mr. Khola for your precious respond.
Still I want to clear one doubt,......Please let me know whether the below criteria is eligible for Gratuity or not.
Date of Joining - 9th April'2006 (On Contract basis for 6 month)
EE permanent - 9th October'2006
EE resigned - 1 May'2011
Total Experiance - 6 Months Contract + 4.7 Years permanent = 5 year and 1 month.
Waiting for your reply.......

Dear Suman,
We are to see the employment of an employee under this Act. He may be employed on contractual, casual, temporary, permanent etc. In this case he/she is eligible to have gratuity from the employer.

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