PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Labour Law & Hr Consultant
Plant Hr Head
Advocate Prem Chanda Yadav
Dy. Manager (hr)
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Abhinn sharmaHelo trapti first of all gratuity is payable when a employee successfully completed 5 years in a company acc to gratuity act and if your company have a contract labour than employer is not responsible to pay gratuity to contract workers
From India, Fatehabad
umakanthan53A Contract labor is different from a Fixed term contract employee as per the definition clauses (19) and (34) of section 2 of the Code on Social Security,2020 respectively
A contract labor is a person whose services are engaged through a contractor by another person called principal employer resulting in no contract of employment between the contract labor and the principal employer whereas a fixed term contract employee is one who is directly employed by the employer for a fixed period under an agreement. Thus a direct contract of employment but for the predetermined period subsists between the two.
Payment of gratuity contemplated u/s 53 of the Code does not require the completion of the minimum qualifying continuous service of not less than 5 years but entitles on pro rata service basis by virtue of the third proviso to section 53 (2) read with section 2 (34) (b) of the Code in respect of an FTC employee.
In view of the above provisions, as far as a contract labor is concerned, the eligibility condition of completion of the minimum qualifying service under the employer remains the same like any other employee for the purpose of claiming gratuity under the Code and not on pro rata basis.
From India, Salem
traptisachanThank you Umakant Sir for your guidance.
From India, Calcutta
Advocate Prem Chanda YadavIf gratuity term/tenure contract employee completing then sure gratuity benefit applicable for him.
From India, Mumbai
ommygautamboth are different as per their definition-
Contractor Labour - Contractor labour is a worker employed under any contractor registered or not registered under the CLRA act ( as per workers strength ) in any company and for this there is an agreement between the contractor and the principal employer. in this there is no any direct relation between the contractor employee and principal employer.
Fix term employment - means a person who direct employed by the company for a term. there is direct relation between the employee and the principal employer.
From India, Rudarpur