Gratuity is a payout employers offer employees as a gesture of appreciation for their dedicated service.
Earlier, gratuity was payable only upon retirement or separation after completing 5 years of continuous employment.

With India’s new Labour Codes, landmark reforms have been introduced—especially empowering Fixed-Term Employees (FTEs) like never before.

Key Benefits Now Guaranteed for FTEs

• Gratuity eligibility after just 1 year of service, instead of the earlier 5-year requirement
• All statutory benefits equal to permanent employees including paid leave, medical benefits, PF, ESI, and social security coverage
• Equal wages and allowances for the same or similar work as permanent staff
• Reduced contractual exploitation, with companies encouraged to hire directly and ensure transparency

These reforms bridge the long-standing gap between contract and permanent employees.
Fixed-term workers now enjoy better financial stability, improved income, and full social security—ensuring fairness without discrimination.

By making fixed-term employment more dignified and equitable, the new labour reforms strengthen the workforce and support sustainable growth.
A truly empowered employee base benefits workers, employers, and the economy alike.