Understanding EPF and ESI Eligibility for 4-Month Fixed-Term Contracts: What Happens if Terminated Early?

If the fixed-term contract is for 4 months, my understanding is that the contractee is eligible for EPF and ESI (if the establishment is registered under EPF and ESI). Is this correct?

Further, if the contractee is terminated before 4 months, should the employer pay any compensation?

Warm regards,
Rittu

Even if the contract is for one day, the contractee has to be covered under PF if his/her wages are less than Rs 6500 per month and under ESI if the wages are Rs 15000 or less.

Regards,
T. Sivasankaran

Termination of Fixed-Term Contracts

The contract of employment under a fixed-term contract (FTC) will stand terminated automatically. In such cases, the termination will not be considered retrenchment as per Section 2(oo)(bb) of the Industrial Disputes Act. In this scenario, no compensation is payable to the employee. However, if the contract of employment is terminated before the specified date, then obviously, the employee should be given either one month's notice or salary in lieu.

Regards,
Madhu.T.K