Management Consultancy
Bharat Gera
Principal Hr Consultant
Service- Hr Manager
Nagarkar Vinayak L

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I want to know whether any employer a. govt. autonomous organization b. Private organization. can withdraw from paying gratuity... I mean can an employer declare that hence forth no gratuity to any regular contractual employee (who are working for more than 5 year) and employer is paying gratuity to only salaried staff.
Please answer.

From India, Jaipur
Dear Udit, A contractor staff is also eligible for gratuity if he works continue service of 4 yrs + 240 days and above.
From United Arab Emirates, Dubai
As regards gratuity is concerned, it is not the nature of employment but continuous service of 5 years ( i.e., 4 years and 240 days) that renders it eligible for payment of gratuity whether it is public sector or private or cooperative sector or any other type of establishment. A statutory payment like gratuity or minimum wages or PF etc cannot be shortchanged by mutual agreement between employer and employee. Remember the Contract Act 1872 principle that any agreement in violation of law is void. If you are so very particular not to pay gratuity then reduce your employment to fixed term below 4 years and 8 months.
From India, Mumbai
Dear Friend,
This is a very funny question. No employer can refuse payment of gratuity to any employee. Please go through the Payment of Gratuity Act and find for yourself.
The POGA does not distinguish between various categories of employees, it uses the term 'employee' only. So whether it is permanent/temporary/casual/badli/contarctual the employer is legally bound to pay gratuity. An employer is not a legislature to rule that henceforth gratuity will not be paid to contractual employees.
If an employer dares to do that , he will be prosecuted. Being principal employer it is his cardinal duty to pay the gratuity to all of its eligible employees.
Warm Regards
Bharat Gera
HR Consultant

From India, Thane
Dear colleague,
No employer can become law unto himself and decide on his own as to whether to apply the Gratuity act or not. If his establishment is covered under it his only option is to bloody well pay the gratuity to eligible employees or in case of default, face the prosecution.
Vinayak Nagarkar

From India, Mumbai
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