News18

In a major relaxation to fixed-term employees (FTE), the government has decreased the minimum continuous service requirement from five-year to one-year for gratuity eligibility under new codified four labour laws.

Fixed-term employees are workers hired for a specific period or project, with a clear start and end date mentioned in their contract. Their employment automatically ends when the term expires, unless the employer renews the contract.

Earlier the minimum continuous service requirement for gratuity eligibility was not less than five years. “Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years," according to section 4 of Payment of Gratuity Act, 1972.

Gratuity is a lump-sum paym

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