Does Contract Time Count for Gratuity and Total Work Experience? Seeking Advice

Good Morning Seniors, I have a query in which I need your help...

Eligibility for Gratuity and Contract Period

If an employee joins a company on a 6-month contract basis and works in that company for 5 years, including the contract period, would that employee be eligible for gratuity? Also, if he or she resigns from the company, will the total work experience include the contract period or exclude it?

Waiting for your reply...

Thank you,

Suman

The gratuity would not be applicable for his contract tenure; it would be applicable only from his regularization period. Regarding the experience, the employee can include his/her contract period. Please revert with suggestions.

Thanks,
Augustin P.

Thank you for your valuable reply. Regarding gratuity, it is clear to me that the contract period will not be included. However, for the experience letter, can the employer refuse to include the contract period? Does this depend on the employer, or is it the same for all employers? Is there a standard policy regarding all of this?

Regards,
Suman

If an employee has worked with you on a contract basis for six months and then continuously completed five years with your company, this employee will be eligible to receive gratuity. If he was working with a contractor on contractual employment for six months and thereafter joined your company, then he/she is not eligible to receive gratuity from your company. The same applies to the issuance of an experience certificate. If worked continuously with your company, then you are required to grant this certificate, including the contract period.

Regards,
R.N. Khola
[Phone Number Removed For Privacy Reasons]

Thank you, Mr. Khola, for your precious response. Still, I want to clear one doubt. Please let me know whether the criteria below are eligible for Gratuity or not.

Gratuity Eligibility Criteria

- Date of Joining: 9th April 2006 (On Contract basis for 6 months)
- EE Permanent: 9th October 2006
- EE Resigned: 1st May 2011
- Total Experience: 6 Months Contract + 4.7 Years Permanent = 5 years and 1 month.

Waiting for your reply.

Regards,
Suman

We are looking at the employment of an employee under this Act. They may be employed on a contractual, casual, temporary, or permanent basis, etc. In this case, he/she is eligible to receive gratuity from the employer.

Regards,
R N KHOLA