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Dr J C S kataky (Chief Scientist)     18 September 2012

Gratuti for contract labour

In my organization we have engaged security guards on contract from a DGR registred contractor. There are 43 security guard working round the clock in 3 shift basis. Now whether these security guards are entitle to get gratuity from the employer ? If so what is the proceedure to demand from the Proncipal Emplyer ? I will be obliged if you kind help me in decidinf the same.


 1 Replies

darshana sawant (associate consultant)     20 September 2012

dear dr kataky,


In which state is your establishment working ?  If it is in Maharashtra, the Security Guards act is applicable, wherein you have to engage the security guards from the Guardboard.  In that case they levy the charges and are responsible for all the payments to the guards.  Is your contractor having labour licence required to be taken under Contract Labour (Regulation ) Act ?   If so, he is responsible for payment of gratuity to the guards upon their resignation or retirement, superannuation or death by accident or disease.  In case he fails to pay, then the principal employer is liable,as per the provisions   of Contract Labour (regulation and abolition ) act.

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