Gratuity Eligibility - company assumes every year a fresh employment

Sir,
In our Union, a new employee has been offered for one year employment. It will be renewed for next year upon the completion of 1 year period. Every year beginning of his employment with the Union, a one day break is being given (assumes that every year a fresh employment) and no salary will be paid on the day of break. My question is in the absence of a day in a year, and the Union assumes that every year a fresh appointment even an employee completes 5 years of service, whether he is eligible for gratuity ? or he will not be eligible for any gratuity. Pls clarify my doubt...
kvrao

Dear Mr Rao, can an Employee be engaged by a Union for work?Whether such workers come under the purview of Gratuity Act? is it a hypothetical Question? please furnish nature of activity carried on by the union & Registered under Which Act?