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The Payment of Gratuity Act 1973 does not cast liability on the principal employer for coverage of contract labour. Though there are a few High Court judgements putting the onus otherwise but that does not appear to be the case, in letter or in spirit. But at any rate, you may insist upon contractor to ensure coverage and allow for reimbursement of gratuity premum deposited with insurance agency with respect to the labour working a your premises.
From India, Mumbai
From India, Mumbai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc