If a person is appointed as an advisor in a company for a fixed term of two years and the term is extended for more than eight years, is he eligible for gratuity upon the closing of his contract?
As per the recent amendment to the Industrial Employment (Standing Orders) Central Rules, employees on Fixed-Term Contracts (FTC) are eligible for proportionate gratuity regardless of the length of their fixed term. Additionally, if the advisor is not a consultant on a retainer basis but has been continuously on a contract basis extended for more than 8 years, they would automatically be entitled to gratuity for the entire duration of service upon the conclusion of the contract.
If the advisor had signed a fresh offer every 2 years instead of an extension, in such cases, he is not entitled to gratuity for the earlier period. However, as per the new Code on Wages, he may be eligible for gratuity for the current contract or any contract signed hereafter for FTE.
Regards, Suresh
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