Pritesh Patel 07 July 2020

Gratuity payment for fixed term contract

If FTC Employee Leave Before Completion Of Contract Period, Will He/She Be Eligible For Gratuity As Per Amendment In Standing Order Act

For Example, we have employees on 1 year contract. If someone leave after completing 240 days but before the completion date of his/her contract, do i need to pay gratuity?
If i terminate someone for long absenteeism etc. after 240 days but before completion of contract period? do i need to pay gratuity?

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Quick Summary

This discussion clarifies gratuity payment for employees on fixed-term contracts. It explains that typically, an employee must complete five years of service to be eligible for gratuity. Therefore, if a fixed-term employee leaves before their contract period ends, or is terminated for reasons like absenteeism, they are generally not eligible for gratuity, even if they have completed 240 days of service.