Labour Law & Hr Consultant

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My question is that if any employee posted on deputation then who will pay his gratuity and why? Let me the know the exact ruling.
Dear Md Najaf,
The term " deputation" or "foreign service" in employment parlance means the lending of the services of an employee in the same or similar cadre on full time basis to another employer for a specified period by his original employer. Therefore, the employment contract between the original employer and the employee on deputation still remains intact during the entire period of deputation. That's why the employer under whose services the deputed employee is placed has no lous standi to the normal powers of sanctioning leave other than C.L, annual increments, awarding punishments and the like. Regarding the terminal benefit of gratuity, still the responsibility lies only with the original employer. That's why the proportionate contributions pertaining to leave salary, PF, Pension and Gratuity for the entire period of deputation in respect of the deputationist is charged and collected from the latter employer to whom he is deputed as per the contract of deputation between the two employers. The absence of such a contract or the clause of proportionate gratuity contribution in such a contract can not absolve the original employer of his liability to pay gratuity as and when the occasion arises.

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