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contract labour gratuity

(Querist) 03 February 2010 This query is : Resolved 
DEAR SIRS,CAN ANYONE PROVIDE ME WITH ANY RULINGS OF SC/HCs REGARDING GRATUITY TO CONTRACT WORKERS ?
Raj Kumar Makkad (Expert) 03 February 2010
If contract do not contain any such term then gratuity is not payable to such contractual employees.
Sarjooram Sharma (Expert) 03 February 2010
In my view all workers who have completed 5 years of continuous service are entitled for gratuity, whether they are contract labour or otherwise if the conditions of employee and establishment are fulfilled.
Parveen Kr. Aggarwal (Expert) 04 February 2010
Yes. As per section 4 of the Payment of Gratuity Act, Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years. An employee is defined in clause (e) of Section 2 as any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.

So all kinds of employees including contractual employees are included therein.

Mr. Raj Kumar there cannot be any contract in violation of statute and any contract in breach of legal provisions of a statute is void.



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