The query is in respect of a PSU Bank, engaging casual labors for day-to-day operations like branch cleaning, etc. If a person was engaged in casual labor on an intermittent basis. does he become eligible for a gratuity claim as per the new labor code? As per new labor codes, what are the benefit accrued to casual labor, not employed for 240 days in continuation and how would it differ if the person is engaged for 240 days.
From India, Hyderabad
Labour Law & Hr Consultant
Ceo-usd Hr Solutions


This is another classic example of exploiting casual labor. One sweeper who will work for years but not getting engagement full month to deprive him/her from payment of gratuity. To my opinion gratuity should be paid.

Now come to law point as per new Social Security Code wherein - Chapter V clause 53 (2) and 54(B & C) explained the conditions of payment of Gratuity for less than 240 days work in a year. Please read those two clauses in details to clarify any doubt.

S K Bandyopadhyay ( WB, Howrah)
CEO- USD HR Solutions
98310 81531

From India, New Delhi

Neither the existing PG Act,1972 nor the yet to be notified Code on Social Security,2020 classifies the employees into permanent, temporary or casual for the purpose of continuous service under sections 2-A OR 54 respectively and both are in pari materia only. However, for the purpose of concession only they distinguish the establishments on the basis of their work schedule as working for 6 days-a-week, less than 6 days-a-week, work below the ground in a mine and seasonal working of the establishment respectively under ss (1),(2) and (3) of sec.2-A of the former and clauses (A),(B) and (C) of section 54 of the latter.

Therefore, unless the intermittent breaks are caused at the instance of the employer for bogus reasons, a casual employee cannot stake his claim for gratuity when he has not completed the threshold no of days under the respective category.

From India, Salem
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