Contract Employee Question: Do I Qualify for 45 Days' Wages if I Hit 240 Days in 11 Months?

Hello sir,

I have one doubt. I am a contract employee, and there is a rule about 240 days. If it is completed in a year, there is a compensation of 45 days' wages. What if those 240 days are completed in 11 months? Am I eligible to apply for those 45 days' wages? Please reply to me in detail with the relevant Acts.

Thanks and regards

You need to understand the fact that as per the act, in a calendar year of service, if a person completes 240 days, then he can be retrenched with one month's wages as compensation and 15 days of gratuity for the service rendered.

Dear Haipandi,

The eligibility criteria are 240 days of continuous service in a calendar year. Completing it in 11 months and becoming eligible is always a debatable point. For the sake of the law on paper, one needs to be eligible only within 1 year, not within 11 months.

In the particular months, your 240 days' attendance made you eligible for benefits to which you are entitled, which equals 45 days' wages. In fact, benefits equal to 45 days' wages are a lump sum of money with many undisclosed details. There is no need to know them if not disclosed to you. It is always advisable to use common sense to manage things without making them complicated. Contact the concerned official to strategically and quickly receive this money. Why are you asking for the names of the Acts under which the entitlements are payable? It's best that you are receiving the money after a year of completion; accept it quietly and use the money. Some companies do not provide any compensation to contract employees, please take note.

Regards,
RDS Yadav
Management Adviser and Trainer
Director - Future Institute of Management and Technology

Please provide more details:

a) Is it a Shop and Establishment or a Factory?
b) Should the requirement be 240 days or more within a year, meaning after completing a year.