Fixed Time Contract renewed from time to time will not make an employee disentitled to rights under the labour Laws like Industrial Disputes Act or Payment of Gratuity Act. This practice is unfair as per ID Act and when it is practiced by a Public Sector Unit, the gravity should be more. Moreover, there has been a period in which your service was shifted to the rolls of an outsider attracting the provisions of Contract Labour (R&A) Act. Since this arrangement is purely a camouflage arrangement to deny the rights of employee under Labour laws, this should be questioned. When the contract is proved to be sham, the employee(s) is/ are entitled to get regularisation. Moreover, you are also eligible for gratuity. As per Payment of Gratuity Act, even temporary employees are eligible for gratuity provided they have worked for five years with each year contributing to 240 days of work. An employee under FTC can easily work for more than 240 days (this 240 days is actually paid days and therefore, it should include all holidays and leave days for which the employee has been paid salary) in a year and break of one or two days after each contract period will not make any difference.

Therefore, I would suggest you should file a case against the PSU and fight for your rights.


From India, Kannur
1. Sir, in addition to remarks of our senior / expert Sh. Madhu ji, as above, I may also submit that the biggest problem of regularisation of services in a Public Sector Unit is that such organisations have their own Recruitment Regulations or recruitment policies duly approved by appropriate governments and having the force of principal Acts / laws on the basis of which such PSUs are incorporated. Such PSUs cannot recruit even single person regularly as their employees in violation of such Regulations of Recruitments. The matter was decided by a full bench of Hon'ble Supreme Court in the year 2006 in judgment of the State of Karnataka & others -vs- Uma Devi & Others. One can online download this judgment for reading and guidance.

2. Therefore, continuing service in the PSUs on contract basis for a long period say 10-15 years or more is very very harmful to the employees on contract basis because in case of private employment, the Hon'ble courts can treat such employment as "sham" as well as "camouflage arrangement", but in case of Public Sector Unit or Government jobs on contract basis, there is violation of such Recruitment Regulations and accordingly when the questions arises for regularisation of services of employees on contract basis, such PSUs will certainly show their helplessness by citing above type of judgments of Hon'ble Supreme Court as well as provisions of Recruitment Regulations. As and when there are elections of Lok Sabha / State Legislatures, the political parties make it a point in their manifestos to regularise the services of such contract employees, but I am not sure, if such election promises are fulfilled by the winning political parties after they form the governments. In Delhi elections, Aam Aadmi Party of Sh. Kejriwal had promised regularisation of contract employees, but from newspapers I have read that the matter is still pending despite of elapse of a long time.

From India, Noida
Dear Madhu sir and Mehta sir, thank you so much for your reply.
From India, Dehradun
Hello sir
We Are contactual labour on ESIC sub regional office Barrackpore. We are a housekeeping labour last 9 to 10 years and working this place. Our mother employer is ESIC sub regional office Barrackpore .it is the Central Government office. Each year tender open or extended for behalf of service provider or service agency got a tender. Every two or three years after service provider will be changed but we are on working in same place as a housekeeping. Our question is that we are eligible for a graduity and also we are appeal for permanent post for this Central Government office as a housekeeping staff of safaiwala.
Please help us for which is the better way for our future. If we are eligible for appeal for permanent post where labour Court, judgement Court or Labour Department of Central Government.

From India, Kolkata
ESI corporation is an Industry under ID Act 1947.If the contract is sham you have a claim .You can approach central labour officers and central industrial tribunal as central government is the appropriate government for ESI.
From India, Thiruvananthapuram
Dear sir,
1. We are a group of ex-servicemen.
2. We are being engaged in groups but on individual offer letters on 4 yrs FTC in a PSU in the year 2010 , 2012, 2013, 2016, 2017 and further batches expected to be recruited.
3. The PSU directly seeks candidates from our record office and after receiving names communicates directly with us conducts interview & medicals then engage. 2017 batch was conducted exam also.
4. functions are as per rugular employee and the requirement is permanent and will remain till the PSU exists
5. the batches were renewed after 4 years but with a gap of 7-8 months
6. no carreer progression/pay & promotional benefits provided only PF. T&C of contract are without any change from 1 st to 2 nd tenure. pay starts a fresh voiding increments gained in the 1st term
7. now the 1st batch 2010 is being denied for extension
8. we want to fight for our rights and go to court of law and want to go for seeking regularisation or further term extension with benefits at par with regular employees
9. what should be our course of action ?

From India, Mumbai

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