If FTC employee leave before completion of contract period, will he/she be eligible for gratuity as per amendment in Standing order act

pritesh-patel1
For Example, we have employees on 1 year contract. If someone leave after completing 240 days but before the completion date of his/her contract, do i need to pay gratuity?
If i terminate someone for long absenteeism etc. after 240 days but before completion of contract period? do i need to pay gratuity?
panchsen
Dear Pritesh-Patel1,
First of all, the question of payment of gratuity arises only after an employee has completed 5 years of continuous service in the same Establishment as per provisions of payment of gratuity act , Therefore you need not have pay gratuity to an employee who is on contract for one year irrespective of his having completed one year of contract or not
Panchsen
P.Senthilkumar
IR consultant
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pritesh-patel1
Dear PSenthil,
Appreciate your prompt reply. this is regarding 2018 amendment in standing order and subsequent circular. attaching the link for clarification
https://www.business-standard.com/ar...20organisation.
hariharan-sankar
Dear Prithesh,
as per 2018 amendment it clearly says about the Gratuity only after completion of 5 years of tenure of service in the same organisation. Whether His/her role of employment permanent or contract which is immaterial. It is clear that he / she should complete their total year of service in the same organisation 4 years and 240 days on 5th year to get eligible gratuity.
Individuals are not eligible for gratuity after completing 4.5 years. However, as per a ruling made by the Madras High Court, individuals who have completed 240 days in their fifth year of service are eligible for gratuity. The legal heir of an employee is eligible for gratuity if he/she dies during employment.
pritesh-patel1
Dear Hariharan,
Would request you to go through link posted in my reply above once. The 2018 amendment in Standing order says and i quote verbatim"he shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute"
Thus making FTCs eligible for gratuity even before 5 years. My query is regarding the same that what should be the treatment of gratuity if FTC leaves before contract completion date but has completed 240 days in that year.
pritesh-patel1
Attaching the notification for everyone's reference
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pritesh-patel1
Requesting views of other members for this query
Bhartiya Akhil
Dear Pritesh-Patel1,
Where it is written about gratuity in the said Notification?
The said notification is amending Central Rules under the IE (SO) Act.
The quote you gave verbatim is for statutory benefits available under the IE (SO) Act and not under the Payment of Gratuity Act.
Payment of Gratuity Act is an independent peace of legislation which is not amended and as per it one has to complete not less than 5 years of continuous service except in the jurisdiction of HC at Chennai and Kerala where POG is applicable on 4 years and 240 days in fifth year.
pritesh-patel1
Dear Bhartiya Akhil,
Appreciate your view. Thanks for the clarity
pritesh-patel1
Dear Bhartiya Akhil,
I think the confusion is there due to media coverage as attached below
https://www.business-standard.com/ar...20organisation
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