As far as concern about the applicability of Gratuity in respect of Contractual Employee, in my opinion the same is applicable. Let me clarify the same. first will go throught he applicabily section of the Act which says that:-
1,(3)(b);- Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishment in a state, in which ten or more persons are employeed, or were employed,on any day of the preceding twelve months;-
(c) such other establishment or class of establishment ,in which ten or more employees are employed ,or were employed, on any day of the preceding of twelve months,as the central Govt may by notification,specify in this behalf.
Now please go through the defination of employee within the same act as says;-
2(e) Employee means any person(other than an apprentice) employed on wages in any establishment,factory mine,oilfield,Plantation,port,railway company or shop, to do any skilled,semiskilled,or unskilled,manual,supervisory,technical,or clerical work,whether the term of employment are empressed or implied,(and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who hold a post under central Govt or a state govt.and is governed by any other Act or by any rules providing for payment of Gratuity.
So if we take in consideration of both these two section, it is clear that there is no inclusion of contractual employee from the defination of employees, the same is implicit within the defination of employee under the Act, any person employed irespective of their status is eligible for payment gratuity subject to condition of 5 years of sevice. there are also judicial pronauncement the same has been held, i will come with that latter.
in case of Payment of Bonus Act the same is also applicable to contract labour, it has been held by Supreme Court. i have gone through those judgments. will clarify you.
Regard
Sanjay