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Hi, One of our employee resigned after 4 yrs 11months. As due to certain situations he couldn't get a new job as expected and asked whether we can extend the service on a contract basis for 3 months. Will he be eligible for gratuity in this case if he continue in service even though on a contractual basis? Pls help
From Australia, Chatswood
From Australia, Chatswood
It's not clear whether his resignation was accepted and he was actually relieved.
If yes, he has to be paid gratuity for the entire service treating as 5 years. The post is also silent on this.
"Three months Contract basis" means Fixed Term Contract Employment the terms of terminal benefits of which are proportional to the length of actual service rendered and thus different from those of the preceding regular employment. This also would require the F&F settlement of dues to the employee for the services rendered as a regular employee by the same person.
Therefore, by accepting his resignation, relieving him formally and settling his dues arising from the regular service, you can reappoint the same employee on fixed term contract basis.
The above answer is India-specific only based on the Indian Laws pertaining to gratuity and fixed term contract employment.
From India, Salem
If yes, he has to be paid gratuity for the entire service treating as 5 years. The post is also silent on this.
"Three months Contract basis" means Fixed Term Contract Employment the terms of terminal benefits of which are proportional to the length of actual service rendered and thus different from those of the preceding regular employment. This also would require the F&F settlement of dues to the employee for the services rendered as a regular employee by the same person.
Therefore, by accepting his resignation, relieving him formally and settling his dues arising from the regular service, you can reappoint the same employee on fixed term contract basis.
The above answer is India-specific only based on the Indian Laws pertaining to gratuity and fixed term contract employment.
From India, Salem
#Listed In: gratuity eligibility contract employee contract basis Country-Australia City-Australia-Chatswood
Gratuity Eligibility.pdf
Fixed Term Contract Employees to get Gratuity.docx
