Umakanthan53
Labour Law & Hr Consultant
Piyadebose
Manager, Er And Training

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My question: Are contractual employees - (fixed tenure followed by renewal) eligible for gratuity payment at the end of 5 years? Will contracts be considered as continuous employment?

Dear PIYADEBOSE,
The nature or type of employment whether permanent, temporary, contractual i.e, FTC etc., is not at all relevant for determining the eligibility of an employee for gratuity under the Payment of Gratuity Act,1972. Any Fixed Term Contract of Employment if renewed consecutively and the employee renders a continuous service of not less than 5 years under the same employer, then he is eligible for gratuty under the Act. Every time the contract is renewed its each expiration gets automatically extinguished.

From India, Salem
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