Where the contract workers are working? Factory or establishment? Annual leave wages are described under the two acts & not under the CL Act.
If the separation of service is because of employer, the payment of pro-rate leave wages (not leave encashment as is incorrectly called) has to be made. The 240 days criteria is for crediting leave on 1st January every year. In F&F settlement leave wages for even one day are required to be paid paid.