Gratuity Entitlement for Contract Staff.
Dear Friends
Recently Mr Justice K.Chandru of the Madras High Court -Madurai Bench in the matter of Special Officer-Srirangam Co-operative Urban Bank Ltd has held that every Employee who has worked in an organization for five or more years is entitled for Gratuity irrespective of the following:
superannuation;
retirement;
resignation;
death;
disablement ; or
any other terminology used by the Employer to send the Employee out of service.
The only exception is under Section 4 (6) of the Payment of Gratuity Act which enabled the Employer to forfeit the Gratuity under certain circumstances and by following a specified procedure if the Employee had not been allowed to retire or reached the age of superannuation.
Our understanding of the verdict on its application in the Contract Staffing Industry invocation of Sec 4 (6)of the Payment of Gratuity Act may be totally difficult is because of the Contract Staff being deployed with a Client
Consequently the entitlement for Gratuity of the Contract Staff cannot be denied on any account.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634
Dear Friends
Recently Mr Justice K.Chandru of the Madras High Court -Madurai Bench in the matter of Special Officer-Srirangam Co-operative Urban Bank Ltd has held that every Employee who has worked in an organization for five or more years is entitled for Gratuity irrespective of the following:
superannuation;
retirement;
resignation;
death;
disablement ; or
any other terminology used by the Employer to send the Employee out of service.
The only exception is under Section 4 (6) of the Payment of Gratuity Act which enabled the Employer to forfeit the Gratuity under certain circumstances and by following a specified procedure if the Employee had not been allowed to retire or reached the age of superannuation.
Our understanding of the verdict on its application in the Contract Staffing Industry invocation of Sec 4 (6)of the Payment of Gratuity Act may be totally difficult is because of the Contract Staff being deployed with a Client
Consequently the entitlement for Gratuity of the Contract Staff cannot be denied on any account.
With Regards
V.Sounder Rajan
Advocates & Notaries & Legal Consultants
E-mail : rajanassociates@eth,net,
-9025792684-9025792634