Gratuity Contract aur Fixed-Term Worker Ko Milegi? Eligibility Guide 2026

Gratuity ke baare mein ek bahut bada confusion hai: "Contract par hoon toh milegi nahi." Yeh galat hai. Gratuity contract workers par bhi laagu hoti hai — agar 5 saal ki continuous service ho (pehle Payment of Gratuity Act 1972 ke under; 21 November 2025 se Code on Social Security 2020 mein yahi provisions continue karte hain — Act repealed ho kar Code aa gaya hai). Lekin ek naya category aaya hai jiske liye 5 saal ki bhi zarurat nahi — Fixed-Term Employment (FTE) under Industrial Relations Code 2020.

Contract Worker — 5-Saal Rule Still Applies

Traditional contract labour (agency se, thekedar ke zariye) ke liye Payment of Gratuity Act 1972 apply hoti hai — same as permanent employees:

• Minimum 5 saal (actually 4 years 240 days under SC judgment) continuous service
• Formula: 15/26 × last drawn monthly wage × completed years of service
• Gratuity contractor deta hai — agar contractor na de toh principal employer liable

Trick: Many contractors deliberately renew contracts every year to avoid continuous service count. Courts ne kaha hai that mere renewal breaks do not break continuity if there's no substantial gap.

Fixed-Term Employee (FTE) — Game Changer IR Code 2020

Naye Labour Codes (Industrial Relations Code 2020 FTE ko define karta hai; proportionate gratuity ka provision Code on Social Security 2020 mein hai) ne fixed-term employment ko formally recognize kiya: FTE ko gratuity 5 saal se pehle bhi milegi — proportionately. Yeh Codes 21 November 2025 se lagu hain, toh yeh provisions ab current law hain.

IR Code 2020, Section 2(p) ke mutabiq FTE woh hai jo:

• Direct employer ke saath written contract par hai (agency ke zariye nahi)
• Contract specified period ke liye hai (could be 1 year, 2 years, etc.)
• Same working hours, wages, and benefits as permanent workers doing similar work

Gratuity for FTE: Proportionate gratuity at contract end — even if contract was only 1 year. Formula same rehta hai — 15/26 × wages × years (fractional years included).

Gratuity Calculation — Quick Formula

Formula: (Last drawn monthly wages × 15 × completed years) ÷ 26

Where:

• Monthly wages = last drawn basic + DA
• 15 = 15 days per year service
• 26 = working days in a month (standard calculation)
• Completed years = for traditional gratuity (fraction < 6 months rounded down, ≥ 6 months rounded up)

Example — Contract worker, 6 years service, last monthly basic ₹20,000:

• Gratuity = (20,000 × 15 × 6) ÷ 26 = ₹69,231

Tax-free limit: ₹20 lakh (for non-government employees, notified in 2019).

240-Day Rule — Kya Hoga Agar 5 Saal Se Thoda Kam?

Supreme Court judgment (Surendra Kumar Verma v. CGIT) ne kaha ki agar final year mein worker ne 240 din kaam kiya ho, toh woh saal poora maana jaayega gratuity calculation ke liye. Toh technically 4 years + 240 days = 5 years ke equivalent aur gratuity milegi.

Hamare blog par is topic par detail post available hai (gratuity-4-years-240-days-rule-eligibility-guide).

Contractor Ne Gratuity Nahi Di — Kya Kare?

Agar aap contract worker ho aur 5 saal complete ho gayi hai:

1. Written application contractor ko do — gratuity claim ke liye (Form I under Gratuity Act Rules)
2. Contractor ke paas 30 din hai reply karne ka
3. Agar reject kare ya ignore kare — Controlling Authority (usually Labour Commissioner) ke paas appeal karo
4. Principal employer bhi liable hai — agar contractor default kare toh principal employer recover karega and deduct from contractor dues

Common HR Tricks aur Kaise Counter Karein

HR Trick	Legal Position
Service contract 4 yrs 11 months par khatam karke renew	If no gap, courts may treat as continuous service
"You're on contract, no gratuity"	Wrong — Gratuity Act applies to contract workers too
Contract on paper, working as permanent	FTE provisions or deemed regularization possible
Contractor disappears after project	Principal employer liable under CLRA Section 21