Yes, 'Badli' and 'Casual' workmen are NOT eligible for gratuity. To have a thorough understanding of this proposition, let us analyze the concept of 'employment'. It comprises three ingredients: the employer, the employee, and the contract of employment. As commonly understood, the employer is the provider of the employment, and the employee is the person who sells their time and skills on the particular activity, whether it is the production of goods or rendering of services, assigned to them subject to the control, direction, and supervision of the employer in consideration of a periodic reward or compensation that can be quantified.
The contract of employment between the employer and employee is the basis for their relationship under which the employee agrees to serve the employer subject to their control and supervision for an assured consideration stated above. Thus, the contract of employment or the contract of service is both distinct and different from a contract for service or contract for an engagement. In other words, the term 'employment' has a subtle but indispensable implication of substantial continuity of the relationship between the parties to the contract. As you are well aware, this is not present in the cases of badli and casual workmen, as their services are mere temporary engagements for a specific purpose or for a definite period of time only.
That is why the Hon'ble High Court of Karnataka, in its judgment in General Manager, Yellamma Cotton, Woollen & Silk Mills v. Regional Labor Commr (Central) n AA under the P.G Act, Bangalore [2006 LLR 1029], observed as follows:
"(a) There can be no claim towards gratuity for the years during which the employee remains absent without leave and had actually worked for less than 240 days.
(b) Badli employees are not covered by the substantive part of the definition of continuous service and are not entitled to payment of gratuity for the badli period."
Hope you are satisfied.
Regards