Dear Seniors, I would like to inquire about the termination of employment for contract/casual workers. Why do most companies end the employment of contract/casual workers after completing six months of service? Is this a legal right of the employer? If so, under which act or rule does it fall? I kindly request your valuable suggestions. #HRD, #IR,
From India, Alwar
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5From India, Alwar
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There is no such right conferred on employers. By terminating the employment of a casual worker within a six-month period, employers aim to avoid paying gratuity. However, this is risky because the right of any worker to receive compensation for retrenchment, considering continuity of service for gratuity, is not just six months but 240 days in 12 months or 120 days in a six-month period.
Therefore, if the employer provides a break of one or two days after six months of continuous employment, the employer will not gain any benefit. At the same time, if the employee has completed 240 days in 12 months, he will have a lien on employment. Although he cannot demand regularization, he can claim compensation if he is asked to leave permanently.
From India, Kannur
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Therefore, if the employer provides a break of one or two days after six months of continuous employment, the employer will not gain any benefit. At the same time, if the employee has completed 240 days in 12 months, he will have a lien on employment. Although he cannot demand regularization, he can claim compensation if he is asked to leave permanently.
From India, Kannur
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Kami Export - Negative Covenant in Contract of Employment.pdf (1).pdf