RAHUL KUNWARPrincipal Employer is not liable to make Payment of Gratuity to contract worker
From India, Kolkata
indra-hrSir, I want to know what is the responsibility of stake holder manager for a establishment. Kindly explain me
From India, Chandigarh
Madhukar_KaithaContract workmen is hired by the contractor, who is the employer for contract workmen. Accordingly contract workmen has to work with his employer for meeting the eligibility criteria of 5 years as per Gratuity Act. In the given case the contractor got changed. Hence, none of the contractor has obligation to pay the gratuity since they have not completed the minimum eligibility period as required under the act.
It may be noted that employer is liable for payment of gratuity and Principal employer has the obligation to ensure the payment for the contract workmen working in his premises subject to meeting the eligibility criteria. Some organisations consider the expense towards the gratuity payment while calculating the cost of the contract.
From India, Bangalore
abhishek unniIf the person has completed 5 years of service in your organization, it is mandatory to give gratuity to the person irrespective of the 1 month gap in contract.
Hope you find this information useful.
If you have any queries regarding any other labour laws call me @8356832404
From India, Thane
panchsenAn employee engaged on contractual terms for one year and thereafter engaged for yet another term of one year after a gap of one month and again and again being engaged in a similar fashion for next 3 years and thus totally the employee has put in five years .The question is whether he is eligible for gratuity on expiry of 5th year contractual engagement .
The answer is YES,
The employer finds the employee a value added resource and felt his continuation in service respective of nature e of contract is useful to the organisation.
By giving a break of 30 days before engaging on same contractual basis for one year again and again is glaringly understood and common sense that the employee should forgo statutory benefits like gratuity and in this process the employer should not lose sight of the fact that continuous service is rendered by employee as per PG Act ,notwithstanding the break in service of 30 days which is deemed to be service being computed / continued for the purpose of gratuity .
Employer should take these points into consideration rather than short cuts and circumventing law.
From India, Chennai
manohar-vasudevDear Mr. Madhu K, I want your esteemed guidance.
In a CPSE which sick and is under closure, all employees are hired on contract for one year. In few cases for 3 years fixed period contract. The initial employment offer letter has a clear clause that you shall not be paid gratuity at the end of your contractual term.The contractual employment of these employees has been extended on yearly basis and many employees have completed more than 5 years service without a break although yearly renewal letter says 'on the same terms and conditions'.
Can payment of gratuity be denied to the employees because in the initial offer letter it was written that 'you shall not be paid gratuity at the end of your term and contract extended on 'same terms and conditions'. Secondly if a break in service of 5 or 7 working days is given before renewal on the contract each years, will this be legal and be construed as break in continous service. Can gratuity be denied.
Thirdly, if a person has worked as regular employee for 4 years and 5 months and then with one day break(that too Sunday) he is reappointed as Contractual employee for one more year, making total period 5 years 5 months with same employer, can Gratuity be claimed?
From India, Delhi
Madhu.T.KFirst of all, you cannot have any negative agreement any agreement which prohibits an employee to get a legal right is invalid. Therefore, the clause that the first three years of service will not be counted for gratuity will not be maintainable. As such if he continues for five years, he will get gratuity.
Secondly, a break of seven days in a period of 12 months will not make the employee ineligible to gratuity. This is because by giving 7 days o break after each contract term, he would naturally have 240 days of service at each spell. An employee would be eligible to get gratuity if he has at least 240 days (paid days) in each 12 months service.
4 years and 5 months service will make the employee ineligible for gratuity but if the second spell as contractual employment contributes to 240 days in the last 12 months together with regular employment, he will get gratuity. That means a change in the status of employment by giving an artifical break of one or two days will not have any impact on the employee's eligibility to gratuity.
From India, Kannur
No issue. All contract employees who are contd. for the consecutive year are perfectly eligible for Gratuity. Even pf esi remittances have a gap of one month or two months no issue. Dues of of EPF ESI can be offered by the individual worker with worker's contribution and matching Employer's contribution without intervention of management.
If the contractor troubles those workers for renewing EPF ESI INDIVIDUAL ACCOUNTS THEY CAN TAKE LEGAL PROTECTION FROM LABOUR DEPT. AND ESI EPF DEPTS ....TO CONVINCE THE MANAGEMENT CONTRACTOR AMICABLY.
FOR PAYMENT OF GRATUITY IF THE CONTRACTOR DENIES ....FAILS TO PAY...
THEN PRINCIPAL EMPLOYER IS LIABLE TO PAY GRATUITY DUES OF EACH WORKER.
THE P. E. CAN RECOVER THOSE PAID GRATUITY AMOUNTS FROM THE PAYING CONTRACT BILLS IN FUTURE.
From India, Nellore
gannahopeI wonder many hr s asking this platform how to escape payments under eligible labour laws. How to make ineligible under gratuity payments. Many Hr s asking to favour managements saying that they have saved some amounts by doing this.
This is very clear... instance.
I am telling that "All contract labour are eligible for ESI and EPF.. Statutory duty of the contractor as well as Possible P. E.
No contract labour leave that one month or so wilfully unless there are some pressure from contractor and managements.
You don't want any risk from workers side. So thinking such ways of escaping payment of gratuity to innocent workers at whatever designation may be.
The intention is clearly known to all.
Let focus on following law of the land under labour Acts.
From India, Nellore
gannahopeHere views and discussions are basing on Acts word by word.. Like moving encyclopidia..
But my views based on ground reality and what is going on practice...
So my words may not be suited or sugar coated to many...
My view is Every person right from worker to employer should respect concerned labour laws applicable.. .
Unfair labour practices lead to dis satisfaction among working community.
That's why newly launched mega factories come to closure within 2years of running stage.
I suggest to all let us encourage good behaviour in following labour laws among management and workers.
From India, Nellore