Some of the PEs (Principal Employer) are getting escape from the context of continuing service clause of gratuity act, by engaing contract labours for a period of one year or less than two years at a single contract and give them a reasonable break in service for a period of 30 days to 120 days and again engage (not terming as appointment or employment or job or duty in the order of engagement) them by another contractor for a subsequent period of two years and so on....
Thus the graduates and engineering graduates and diploma holders are not able to settle down with permanenacy in employment.
We have to discuss this subject elaborately and find a solution.
My view is the most of the CTC structure is given with gratuity structure of 4.81% of CTC and the same is not paid at the end of each year, or at the end of tenure of employment, when it occurs before the completion of five years of service, as per gratuity act. If so, why the gratuity structure is included in annual CTC, as most of the employees are changing their employment well before they complete 5 years. If the PEs are more particular about their, funds and financial problem, better they can come under group gratuity scheme , by depositing the gratuity payable by way of annual premium and link the gratuity with life insurance companies. In spite of that, the PEs are very particular to find by-pass way to escape from the gratuity payment. Why this trend among PEs. If only the payment of gratuity is the only way to regularise their financial constraint. please discuss and find a solution amicabily.