Applicability of Gratuity for Contract Employees

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..... Applicability of Gratuity for Contract Employees
Query (Issue) Started By: - Pradeep Jain Dated:- 19-8-2014 Last Reply Date:- 19-8-2014 Other Topics
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Indian Laws
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. .....

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..... 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 Reply By Pradeep Khatri: The Reply: Dear Pradeep, In one case, the Kerala High Court has held that neither the Contract Labour (R and A) Act, 1970 nor the Payment of Gratuity Act, 1972 provides that the principal employe .....

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..... r can be held liable to pay the gratuity to the workers engaged through the contractor (1). However, the Madras High Court has held that although liability for payment of gratuity is that of the contractor but by virtue of section 21 (4) of the Contract Labour (RandA) Act, the principal employer can be directed to make payment of gratuity to the employees of the contractor and recover the same fr .....

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..... om the contractor (2). In another case, the Madras High Court has held that when the contractor, who engages the workmen, does not pay the amount of gratuity to them, the principal employer is liable to pay all duesincluding gratuity to such workers as per provisions of section 21 (4) of Contract Labour (Regulation and Abolition) Act, 1970 (3). (1) Comminco Binani Zinc Ltd. v. Pappachan, 1989 LLR .....

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..... 123 (Ker.H.C.) = 1989 (58) FLR 528. (2) Madras Fertilisers Ltd. v. Controlling Authority under the Payment of Gratuity Act, 2003 LLR 244 (Mad. H.C.) = 2003 (97) FLR 275. (3) Superintending Engineer, Mettur Thermal Power Station, Mettur v. Appellate Authority, Joint Commissioner of Labour Combatore and Another, 2012 LLR 1160 (Mad. H.C.). This is for your kind information. Regards YAGAY and SU .....

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..... N (Management and Indirect Tax Consultants)
Discussion Forum - Knowledge Sharing .....

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