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Is there any limited period to engage a person in contractual basis by PSU in managerial positio or can continue renewing contract till they want?
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If a person engaged by PSU on contractual basis in managerial position initially for one year and later on continued for eight years by renewing the contract. After completion of eight years if the company stop for renewing the contract can he claim for further extension and eligible for gratuity?
Advirtised for engagement on contract for one year. Later same contract renewed with artificial break of 5 to 15 days and two years without break and enhancing contract remuneration.
Even if a person employed in Contract basis,he will be eligible for Gratuity if continuously worked for more than five years (Without any break in service). But if any artificial breaks happened in renewing contract and no continuous service happened,he cannot claim Gratuity.
Seeking opinions from Seniors too.
Can a managerial position contract employee claim for regularization of job after 10 years of his contractual service?
Is it unfair practice to keep a managerial position employee on fixed term contract by renewing contract for long time?
Makhan Dutt,
it is unfair labour practise to keep on renewing contracts for long time.
But then permanency for people has financial liabilities which will be more than what is incurred on contractual people.
Long term contract engagement in managerial position leads to job regularization in psu is possible or not?
Since it is a psu, it must have framed recruitment rules for the post. It is governed by article14 of the Constitution of India. To continue a person on contractual basis when rules for regular appointment are in force, is not permissible in view of Asha v State of MP. It will be contrary to Uma devi decision too.
If management want to keep the contractual managerial employee on permanentle role can they will relax age limit for that person in open advitisement.

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