Fixed Term Contract

Dear All,
We have 3 Fixed Term Contract Employees for two years in our Organisation (Engineering) in Maharashtra.
I would like to know as an employer whether we are liable to pay gratuity for these employees and are they eligible for leave.
If we continue to employ them after two years by renewing their contract for another two years whether they are eligible for permanancy in the organisation.
Regards,
Shilpa

Fixed term employees are also eligible to leave with wages as per rules of the company or as per the Factories Act. If they have worked for 5 years by getting their term renewed every time they are also eligible for gratuity. What makes them different is that they need not be served notice of retrenchment in order to terminate their service on the date of expiry of their contract period. That means their termination of service would take place automatically on the date mentioned in their contract of appointment. However, if you need to terminate it before such date you have to serve notice.
Regards,
Madhu.T.K