Dear Sir,
We have contract employees under contract of Manpower supply and Securities services. Some of employees has completed more than 5 years of service under the same contractor without any break of service.
Query is that:-
1- Are such employee are entitled to get Gratuity ?
2- If yes, then then the same is payable by the concerned contractor or by the Company.
Regards
Pradeep
Gratuity for Contract Workers: Kerala and Madras High Courts Differ on Principal Employer's Liability Under Section 21(4). A query was raised regarding the entitlement of gratuity for contract employees who have completed over five years of service under a contractor. The response highlighted differing court rulings: the Kerala High Court stated that the principal employer is not liable for gratuity payments, while the Madras High Court ruled that the principal employer could be directed to pay gratuity if the contractor fails to do so, as per section 21(4) of the Contract Labour (Regulation and Abolition) Act, 1970. The principal employer can recover the payment from the contractor. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
