Gratuity Confusion: Does It Apply to Long-term Contract Staff in NGOs?

Dear Sir/Madam,

We are an NGO that employs both regular and contract staff. I would like to know whether gratuity applies only to regular staff who have worked for at least 240 days in one year, or if it also applies to contract staff directly employed by the NGO who have served for more than five years on an 11-month contract renewed annually. Please advise.

Gratuity is payable to all employees, whether regular or on a fixed-term contract, who have worked for at least 5 years. An employee on a contract for 11 months, renewed every time, would certainly qualify for gratuity if the total service from the start to the end amounts to 5 years. There is no relevance for an 11-month contract. This practice of taking a break after eleven months would only be considered an artificial break, and you cannot benefit from it.

The Role of NGOs in Employee Rights

An NGO should work for the betterment of others, their upliftment, etc., right? Before delving into helping 'others,' why not consider the rights of the people who work for you? Why limit them to an 11-month contract only? If you are a genuine organization, you should first understand what is required in terms of your own employees/volunteers. Provide them with whatever is necessary as per the law. If you had taken care of them, you would never have appointed them under a fixed-term contract.