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Eligibility of gratuity to contract labour. case as follows;Dear seniors eligibility of gratuity to contract labour. case as follows; mr.x is a contract employee working with abc company contractor. 1. mr.x deputed at one company principal employer_1 & worked for 3 years 01012001 to 31122003. 2. now contractor shifted mr.x to other company principal employer_2 & he worked there for 3 years 01012004 to 31122006. my question is whether mr.x is eligible for gratuity or not? my confusion here is from contractor side he worked continuously 6 years with different principal employer. please clarify. regards priyatham Doubt on contract labour-pls clarifyThere exists a contract between employees and contractor for staying 4 years with themcontractor.the contractor has deputed those employees as trainees to the principal employer.once the trainees completes their training period with the principal employer they will be obsorbed by the principal employer.till that time they will be paid by the contractor and they will be in the rolls of contractor. within a yeardue to slow down in projects with the principal employerthe principal employer could not train its trainees further as a cost cutting measure and told the contractor to take all the trainees back by giving 1 month of notice period.and the contarctor also issued notices to all its employees who were deputed to the principal employer. and my question is:is there any possibility for the employeestrainees to proceed legally against the principal employer? whether this issue comes under contract labour act or industrail disputes act or apprenticeship act? Principal employer does not wish to pay the gratuity - who needs to pay gratuity contractor or principal employer?Just asking: the contractor only charges 5 as the service charge and the gratuity is 4.81. how will the contractor be able to pay the gratuity if the principal employer does pay for the gratuity separately? the contractor is willing to pay gratuity to the employees but the bill needs to be raised for that specified amount and sent to the principal employer. but the principal employer does not wish to pay the bills regarding gratuity payment. they state that the contractor should take care of that. what should be the right course of action for the contractor since it will be financially impossible for the contractor to pay for the gratuity of the employees with so less margin of service charge. there are some principal employers who only pay 3 as service charge.