Are Fixed Term Contract Employees Eligible for Gratuity and Leave in Maharashtra?

Dear All,

We have 3 Fixed Term Contract Employees for two years in our Organisation (Engineering) in Maharashtra. I would like to know as an employer whether we are liable to pay gratuity for these employees and if they are eligible for leave. If we continue to employ them after two years by renewing their contract for another two years, are they eligible for permanency in the organization.

Regards,
Shilpa

Fixed-term employees are also eligible to leave with wages as per the rules of the company or as per the Factories Act. If they have worked for 5 years by renewing their term each time, they are also eligible for gratuity. What makes them different is that they need not be served notice of retrenchment to terminate their service on the date of expiry of their contract period. This means their termination of service would take place automatically on the date mentioned in their contract of appointment. However, if you need to terminate it before such date, you have to serve notice.

Regards, Madhu.T.K