Dear Sir/Madam,

We are an NGO that employs regular and contract staff. I wanted to know whether gratuity applies only to regular staff who have worked for not less than 240 days in one year and even to contract staff directly employed by the NGO who have served the NGO for more than five years on an 11-month contract renewed every year. Please suggest.

From India, Bangalore
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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.

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.

From India, Kannur
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Thank you very much Mr. Madhu for your clarification.
From India, Bangalore
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request , i need vonder experience letter it’s needed for me
From India, Pune
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Mr.Madhu’s points are very much valid. Such practices are followed by many establishments in all sectors. It’s a menace indeed.
From India, Bangalore
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