Gratuity for contract employees who have gap of 1 month in between there end of contract and new contract - CiteHR
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Principal Employer is not liable to make Payment of Gratuity to contract worker
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Sir,
I want to know what is the responsibility of stake holder manager for a establishment.
Kindly explain me
Contract 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.
If 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.
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