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piyadebose
My question: Are contractual employees - (fixed tenure followed by renewal) eligible for gratuity payment at the end of 5 years? Will contracts be considered as continuous employment?

umakanthan53
5967

Dear PIYADEBOSE,
The nature or type of employment whether permanent, temporary, contractual i.e, FTC etc., is not at all relevant for determining the eligibility of an employee for gratuity under the Payment of Gratuity Act,1972. Any Fixed Term Contract of Employment if renewed consecutively and the employee renders a continuous service of not less than 5 years under the same employer, then he is eligible for gratuty under the Act. Every time the contract is renewed its each expiration gets automatically extinguished.

From India, Salem
kumarshiva188
Dear Team,

Please check and confirm the eligibility of Gratuity for contract employees, whether it will be paid by principal employer or contractor. Is there any provisions that principal employer will be liable to pay Gratuity to contract employees.

From India, Bangalore
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