Dear Mr. Madhu K, I want your esteemed guidance.
In a CPSE which sick and is under closure, all employees are hired on contract for one year. In few cases for 3 years fixed period contract. The initial employment offer letter has a clear clause that you shall not be paid gratuity at the end of your contractual term.The contractual employment of these employees has been extended on yearly basis and many employees have completed more than 5 years service without a break although yearly renewal letter says 'on the same terms and conditions'.
Can payment of gratuity be denied to the employees because in the initial offer letter it was written that 'you shall not be paid gratuity at the end of your term and contract extended on 'same terms and conditions'. Secondly if a break in service of 5 or 7 working days is given before renewal on the contract each years, will this be legal and be construed as break in continous service. Can gratuity be denied.
Thirdly, if a person has worked as regular employee for 4 years and 5 months and then with one day break(that too Sunday) he is reappointed as Contractual employee for one more year, making total period 5 years 5 months with same employer, can Gratuity be claimed?
Thanks