payment of gratuity

TS Bhatia (Querist) 05 September 2008 This query is : Resolved
Who is liable to pay gratuity to contractor workers ? Principal employer or contractor ?

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H. S. Thukral (Expert) 05 September 2008
Contractor.

Murali Krishna (Expert) 08 September 2008
There is no provision in the Contract Labour (Regulation & Abolition) Act to provide gratuity to contract labourers by the principal employer. Even in the Payment of Gratuity Act no such provision exists. However, Madras High Court in Madras Fertilisers ltd Vs. Controlling Authority under PG Act [2003 LLR 244 (Mad) held that principal employer can be directed to pay gratuity and recover the same from the contractor.

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