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arungovindarajan (ENGINEER)     16 July 2013

Gratuity for contract employees

Contract employees of the company ( They help in serving food,and do housekeeping activties in the company).

They are in the company for around 8 years . Is gratuity applicable to them because they are working for the company for more than 5 years ? or Is it not applicable because they are not our employees ? Which is as per Law correct ? Our company now ( first time after 7 years from  they been appointed as contract employees ) have given their salary details  to the Actuary for Gratuity Valuation .

Overall Question is Can such Contract employees ( who are working for more than 5 years ) be entitled to our Gratuity Beneit ?



Learning

 3 Replies

Kumar Doab (FIN)     16 July 2013

They are eligible.

If the contactor does not pay the principle employer should pay.

Valuable advice of learned experts/members is sought.

 

 

shweta khandelwal (SENIOR EXECUTIVE )     14 January 2014

Is principle employer liable to pay the gratuity on failure of payment to be made by Contractor??Gratuity is liability for contractor  or employer???

Kumar Doab (FIN)     17 January 2014

 

Section 21(4) of the Contract Labour Act, it is the principal employer who is bound to pay the gratuity even in respect of a Contract Labourer.

 

Even the contractor liability to pay Gratuity can be fastened on principle employer.

 

Madras High Court

The Superintending Engineer vs Appelalte Authority/ on 23 June, 2011

 

Madras High Court

The Superintending Engineer vs Appelalte Authority/ on 23 June, 2011

 

https://www.indiankanoon.org/doc/90459042/?type=print

 

 


Attached File : 66532417 even the liability of contractor to pay gratuity be fatsened on principle employer.doc downloaded: 142 times

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