Can Contract Workers Claim Permanent Employment After 240 Days? Seeking Advice!

Somebody, please help! 😕

Upon completion of 240 days of continuous employment under temporary status, a person can claim permanent employment. In the case of any contract, can a person claim any rights to permanent employment if the contractual period is 240 days or more? If yes, what is the alternative? If no, what should the contract clause be to prevent such a claim?

Thank you for your attention to this matter.

Dear Friend,

Here is an excerpt from a Bombay High Court judgment:

"As per Section 25F and 25N of the Industrial Disputes Act of 1947, merely because an employee has rendered 240 days of continuous service, that by itself does not give rise to a claim for permanence."

I hope you have found your answer.

Regards

Hi,

If any contractor labor can complete 240 days of work, i.e., a continuous period of one year, his services are regularized under the statutory provisions.

The alternative procedure is to break the service of such labor for every 3 months. In such case, the question does not arise for the continuity of service.

Hope you will understand the procedure.

Regards,
P.V. Rama Rao

Thank you very much for the valuable judgment. What I understood from the judgment is that a person cannot claim permanent employment merely because he/she has completed 240 days of continuous service. Is it safe to have an 11-month contract with employees? (Contract between employer and employee) Is there any compulsion to have a percentage/number of employees on regular employment in an organization? Or can all employees be on contract? On completion of a contract in any organization registered under Shops and Establishments Act (referring to Goa), is the employer liable to pay gratuity for having worked for more than six months as their services get terminated automatically upon completion of the contract? Awaiting your reply. With best regards, pundalikhr

Dear Friend,

1) Yes, it is safe to enter into an 11-month contract with employees.

2) Yes, the Contract Labour Act prohibits and regulates contract laborers in the establishment. You have to check the state notification in this regard.

3) The Gratuity Act will be applicable to employees who have provided 5 years of service to the establishment.

Regards

Sir,

Please specify which act covers the appointment letter. Is it under central legislation or state legislation?

Awaiting your fruitful reply with regards,

Pundalikhr

Dear Friend,

Issuing an appointment letter is an offer, and accepting it by the candidate establishes the contract between the two parties. The legislation governing appointments is the Indian Contract Act, which is a central legislation.

Regards

I joined the company on 25-05-2009, and the agreement was in place until 31-03-2010. A week ago, HR contacted me and confirmed that from 1st April 2014 onwards, I would be an on-roll employee. Now, I have resigned on 27-Nov-2014 and am inquiring with HR about my gratuity.

They simply stated that my confirmation date of employment was 1-Sep-2010, and my PF deductions also began from that date. I kindly request your guidance on this matter.

Regards,
Suresh