Legal Concerns: Is It Fair to Hire on Fixed-Term Contracts Without Gratuity?

Dear all,

What is the legal basis for hiring employees on Fixed-Term Appointments and revising every year without providing gratuity facility? Please explain the legal basis for this.

Regards,
Yashavant
8806699680

I think you are under some compulsion to raise such a query on a proposal which, to my mind, sounds unethical apart from being illegal. In fact, reading between the lines of the opening part of your statement, one can understand that it is not the nature of the job that requires an appointment on a fixed-term basis. Irrespective of the mode of appointment, the right to certain statutory benefits would automatically accrue to an employee over time as the employment relationship continues, despite the artificial breaks between the expiry and consecutive revival of a fixed-term contract. Instead, you can engage a person on a retainer basis as it would ensure freedom of contract for both parties and would also be fair and lawful from both perspectives.