Applicability of Gratuity for Contract Employees

[Pradeep Jain]

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

AI Summary

Gratuity liability for contract employees: entitlement exists but courts differ on whether contractor or principal employer must pay.
Applicability of gratuity to workers engaged through contractors raises whether entitlement attaches to contract employees and whether the contractor or the principal employer is liable. Judicial decisions conflict: some hold the contractor alone liable for gratuity, while others allow the principal employer to be directed to pay gratuity to the contractor's employees and recover the amount from the contractor under the contract labour regulatory scheme.