New Delhi: Employees will now be eligible to receive gratuity after completing just one year of service instead of the earlier mandatory five-year requirement, the government has announced while overhauling India’s labour laws.
The Centre, on Friday, brought into place four simplified labour codes, merging 29 legislations that existed.
Union labour minister Mansukh Mandaviya has said that the restructuring aims to provide better wages, wider social security, improved working conditions and stronger health-related safeguards for workers across all sectors. ADVERTISEMENT
The reforms concern fixed-term employees (FTEs), who would be eligible for gratuity after completing only one year of service with an organisation. This marks a significant departure from the previous provision under the

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