As per your posting, I am failed to understand of whom you are talking. Is the person is a Consultant or Employee? Gratuity is not applicable to a consultant but applicable to an employee.
An employee on fixed term employment is eligible for “Gratuity” even though not completed qualifying period at prorate basis for the service rendered.
Gazette notification of Amendment on Industrial Standing Orders is attached for reference.
From India, Mumbai
581An employee on fixed term employment is eligible for “Gratuity” even though not completed qualifying period at prorate basis for the service rendered.
Gazette notification of Amendment on Industrial Standing Orders is attached for reference.
From India, Mumbai
The above notification is something which enables all employers to hire employees for fixed term and is meant for payment of gratuity. This notification allows the employers who have certified standing orders to include a particular category of workers, viz,Fixed Term Contract Workers for a fixed term. This was earlier available only to employers in apparel manufacturing sector but extended to any industry permitting the employers to hire people and fire them. In order to make the Unions happy, they have included the clauses like payment of remuneration and other statutory contributions equal to other permanent workers, payment of gratuity if their term is not renewed and thus terminated before 5 years etc. The scope is different and is applicable only to such establishments who have standing orders.
From India, Kannur
From India, Kannur
Good evening Mr. Madhu, Thanks for prompt remark and shading additional light upon the topic.
From India, Mumbai
From India, Mumbai
Dear All,
Our organization is school which comes under shiksha samiti or trust, n we are hiring some professional coaches in various fields on contracts n so need all ur advice on tht, specially in regard to gratuity as they have 4 hr of time.
So there contract be made as consultant in sports or be it as professional fee.
Our organization is school which comes under shiksha samiti or trust, n we are hiring some professional coaches in various fields on contracts n so need all ur advice on tht, specially in regard to gratuity as they have 4 hr of time.
So there contract be made as consultant in sports or be it as professional fee.
This subject was discussed in length in various other threads also. A school has a curriculum and sports is also included in it. Your students get trained in sports only as part of studies but sports is not their primary objective. I don't think that you will take your children to the ground during March or examination is going on. Now like any other faculty member, a trainer is to be employed following the education rule of the state. This is to be followed even if you are an unaided school,ie, school which does not take financial assistance from the government. It is immaterial whether you employ him for the entire day of 8 hours or only for 4 hours a day. In this 4 hours, he has to follow a set of rules,time schedules and follow a dress code etc. In such circumstance, his status is just like a teacher. How can he be called Consultant or Professional? It is true if he comes every day and gives instructions to one or two of your teachers as to how to give physical education to the students. In such cases, the fees that he collects is professional charges. On the other hand, if he comes to your school at 9.30 am and gives training to the students as per a pre designed schedule and leaves at 1.30 pm, he is just like an employee or a part time employee. He should be paid salary, be subjected to PF and ESI, and finally when he leaves the school (after rendering the qualifying service) the school, pay him gratuity. Since everything is linked to salary which in turn is also linked to hours worked, whatever to pay will be lesser than that payable to full time teachers.
From India, Kannur
From India, Kannur
Dear All, At the end of every year his full n final settlement is being made, Will he still gets gratuity ?
Hi Rithveek,
You want to break the contract on year basis and want to give considerable break every year and also you are clearing FFS on yearly basis to avoid statutory commitments like gratuity . But again you are seeking the services of the same employee. Why ? Is is due to lack of qualified candidate for the said position or the company is happy with the services of the said employee. Instead you can regularize the employment of the said employee and give him all statutory benefits like PF,ESI, Bonus, Gratuity etc so that the morale of employee will also be very high and you can expect more performance.
From India, Madras
You want to break the contract on year basis and want to give considerable break every year and also you are clearing FFS on yearly basis to avoid statutory commitments like gratuity . But again you are seeking the services of the same employee. Why ? Is is due to lack of qualified candidate for the said position or the company is happy with the services of the said employee. Instead you can regularize the employment of the said employee and give him all statutory benefits like PF,ESI, Bonus, Gratuity etc so that the morale of employee will also be very high and you can expect more performance.
From India, Madras
Dear Rithveek,
When I have gone through all answers of Mr. Madhu, this question arise in my mind that when employee has got and Accepted Full and Final Settlement every time, then how we can consider that he is in continuous service. Once he has signed on Full and Final settlement and taken the money though cheque how he can prove that he is in continuous service...?
The acceptance of Full and Final means the end of Employer and Employee relationship in my opinion.
I request to Madhu sir to please clarify
Regards,
Manish Bali
From India, Delhi
When I have gone through all answers of Mr. Madhu, this question arise in my mind that when employee has got and Accepted Full and Final Settlement every time, then how we can consider that he is in continuous service. Once he has signed on Full and Final settlement and taken the money though cheque how he can prove that he is in continuous service...?
The acceptance of Full and Final means the end of Employer and Employee relationship in my opinion.
I request to Madhu sir to please clarify
Regards,
Manish Bali
From India, Delhi
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Fixed Term Contract Employees to get Gratuity.docx
Gratuity notification amendment in definition of employees.pdf