Is Gratuity is applicable to Fixed Term Employees for a period of three year.

Dear Sir,

Thank you for the reply. Meanwhile, what are the statutory benefits that should be given to FTC employees? Is it the statutory benefits defined by the ministry or by PSUs? If it is from the ministry, could you please provide me with the link to the document?

Thank you.

Sir,

Attached is my offer letter and gazette notification for your reference. My only concern is whether I am eligible to claim all the benefits under Fixed-term employment G.S.R No. 235(E) dated 16.03.2018?

Thank you.

Dear Varun,

Before I give my opinion on your queries, there are a few things to be determined:

1) Whether the term "Workmen" as described in the notifications G.S.R. 235(E) dt. 16.3.2018 is applicable to you or not;

2) Why is your Offer letter silent about "other benefits" except the consolidated package mentioned therein?

3) Having accepted the Offer along with the duties, responsibilities, terms, and conditions and joined duty, will you have any option of raising such issues now?

4) In all probability, I presume you must be entitled to all benefits being extended to regular/permanent employees performing equivalent to your profile, etc.

However, in the circumstances, with a view to maintaining good rapport with management to start with, you can as well orally ask your HR about these issues and try to make these things clear to you. I hope they are the right officials to provide you with the correct picture on these issues. Thereafter, if you are still unclear, you may take the next step, keeping in view relevant aspects including future career options.

So far as gratuity and leave are concerned, I am sure you are entitled to a proportionate amount as rightly due. At the same time, there cannot be any doubt about the applicability of EPF to you despite being on the FT contract.

I wish your term should be extended further and get converted to permanent status and gain all the due benefits.

Hello Mr. Kumar, pls see my below replies:
1. Nope, it says Young professional on fixed term contract basis.
2. I don’t have an answer to that, bcz I’m also now worried after working for 6 months here in the organisation. I joined here as it was the Government organisation.
3. I clearly had no such questions when I opted the offer bcz it was all new in the Government sector.
4. Leave the question of extending to regular I’m already worried there is no options that our organisation will accept these terms if I put up a file.
Verbally asking HR ..... it’s a serious shit here bcz nobody knows wat to do with wat. Managers are so dumb except few...
I hope you can understand the whole situation of here.

Definition of the Fixed term employment.
“A fixed term employment workman” is a workman who has been engaged in the basis of a written contract of employment for a fixed period:
a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman; and
b) he shall be eligible for all statutory benefits available to permanent workman. Above attached gazette FYR. Pls see.

Hi,

Can someone please address my issues....

Hi Varun,

I understand your anxiety and predicament. I feel right now you won't face any problem as you have an assured tenure of 3 years, which is quite a long period to plan for your future. By the end of this tenure, you would have acquired enough experience and maturity. And don't stop exploring better opportunities, keep trying.

So far as your worries are concerned, look at this checklist (treating your unit as a 100% fully-owned government of India enterprise registered under the Companies Act or a corporation, being a 'Mini Ratna' CPSU) -

1. Salary = No problem (still, I won't rule out the possibility of enhancement coming in your way on their initiative)
2. EPF and Gratuity = 100% assured
3. Bonus = If eligible, at least 8.33% in the form of ex-gratia, if and when declared considering your 'salary' level, beyond the coverage of the Payment of Bonus Act.
4. Terminal benefits (if tenure not extended beyond 3 years) = ?
5. Leave = ? But legally, you are entitled to all types of leave. Have you not availed any leave in the last 6 months since you joined here? If not, try availing for a day or two, as a test case, and let us see what happens. No one can deny the right to leave.
6. Pension = ? Almost not possible.
7. Residential quarters/use of Co. vehicle = Yes.

I hope, in the course of time, all your puzzles get sorted out soon. Don't worry, gain more technical and overall experience as much as possible, which will only take you to places. Keep in touch. All the best.

The point of the capacity of employment of the hired FTC employee raised by our friend Mr. Kumar warrants active consideration in the backdrop of the recent amendment to IE(SO) Rules permitting FTC Employment. Needless to say that the IE(SO) Act, 1946 applies to certain industrial establishments only with specific reference to those employees who fall within the category of "workman" as it simply adopts the definition of the term "workman" as defined u/s 2(s) of the Industrial Disputes Act, 1947 by reference.

Therefore, legally, the concession granted by the amendment to employ people on FTC basis goes only to those employers who employ people in the capacity of workmen and the rights and benefits mentioned in the amendment are available only to those FTC employees employed in the cadre of workmen. In respect of appointment of non-workman cadre of employees on FTC basis, the terms and conditions of employment can be strictly according to the contract of employment only subject to the provisions of the laws applicable.

Coming to the predicament faced by the poster, it is well-settled in Law that mere designation or the quantum of salary alone does not decide the status of an employee but only the predominant nature of duties usually performed by him/her is the decisive factor. In common parlance, the term "young professional" refers to a young man doing professional work or job like a doctor, lawyer, chartered accountant, architect, etc. The level of professional training or academic qualification does not make one automatically a professional. Whether such people are paid employees or self-employed, they would become professionals only when they are governed by the special code of conduct applicable to such profession. So, the designation used by the management is a confusing one emanating from the mind of a person who should be the most confused or tricky.

That apart, the documents uploaded by him also do not lend any support to take a decision either way. Therefore, what I can conclude to the best of my knowledge is this:

If the so-called "Young Professional" employed on FTC basis is a "workman," he is entitled to all the benefits available to the regular workmen of the establishment whether it is so mentioned in the offer/appointment order or not. Otherwise also, he is entitled to the benefits of regular employees of non-workman cadre to the extent thus mentioned in the above documents.

Dear Sir,

Could you please confirm whether G.S.R 235(E) is applicable to Executive employees hired on a fixed-term contract by a PSU CPSE Category-1?

Dear Sir,

I have been appointed on a Fixed-Term Contract in a reputed private limited company from 3.12.2016 to 30.11.2021. I am just 2 days short of completing 5 years of service. However, my organization is now refusing to provide gratuity, stating that 5 years of employment are mandatory.

I am currently unemployed and have not received my gratuity.

I kindly request your assistance on how to proceed in this matter.

Thank you.