How to claim gratuity in a contract employment?
2 years ago
I was employed in a private limited company for a fixed period contract term of 1 year. In my offer letter CTC, there is gratuity of Rs 721. I resigned from service just 15 days before completing the contract tenure. And I have asked for gratuity amount to my employer. They replied I should complete 5 year of service inorder to withdraw gratuity. So my question is how can I complete 5 years of service with the employer as I'm only a fixed term employee of 1year and they have included gratuity in my CTC also. So I'm eligible to withdraw gratuity as per law?
Gratuity is payable on termination of contract period under fixed term employment, according to Section 53(1)(d) of the Code on Social Security. In the case of the expiration of a fixed-term contract, the second proviso states that the five-year continuous service requirement is not required. The third proviso to Section-53(2) states that gratuity must be paid on a pro rata basis to fixed-term employees.
However you have ended the contract tenure 15 days before the stipulated time, which would make it difficult to claim the gratuity.
Thank you
A.Dear Sir,
You may approach Labor office or concerned office and atleast ask the contractor to transfer such amount to your new employers gratuity account.
As per the law to be eligible to withdraw the gratuity one has to complete five years of service actually 4 years and 240 days. Since you have not completed hence you are not being allowed for it. Now the question that you have asked is to be asked to the employer that why is he putting this amount when he does not intend the employees to work beyond 1 year.
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