Umakanthan53
Labour Law & Hr Consultant
+1 Other

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Can we exempt FTC employees from PF and gratuity by a mutually signed agreement. Hope we can also give directions that your EL shall not be encased. Experts please reply.
Sorry, you cannot do that because as a general rule " Contracting-out " is strictly prohibited under Labor Jurisprudence.
Besides, the Industrial Employment(Standing Orders) Central(Amendment) Rules,2018 specifically lay down the following rules to be complied with in respect of Fixed Term Contract Employment:
* Working hours, wages, gratuity etc., of the FTC Employee shall be equal to that of a permanent employee of the establishment.
* All statutorily mandatory benefits available to the permanent employees of the establishment shall be available to the FTC Employee proportionally according to the length of FTC Employment rendered by him.

You may evade from Gratuity / Regularization issues of FTC/E, but cant play with Social Security Acts. Its mandatory under those Statutes.
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