Gratuity Eligibility Now Just One Year Under New Labour Rules: What You Need to Know
The Indian government has made a big change to labour rules that will benefit many workers. The time you need to work to get gratuity (a kind of financial thank-you payment when you leave a job) has been cut down from five years to just one year for fixed-term employees. This change started on November 21, 2025.
What Has Changed?
Earlier, fixed-term employees – those hired for a short period or a specific project – had to work for five years continuously to get gratuity. But with the new rules, these employees will get gratuity after working just one year.
Fixed-term employees now get the same benefits as regular full-time workers. This includes equal pay, leave days, health benefits, and social security. The goal is to treat fixed-term workers fairly, just like permanent employees.
Why This Change Matters
For a long time, fixed-term workers did not get these benefits because they often switch jobs before five years. This change helps them get financial support even if they work for shorter periods.
It also stops companies from wrongly labeling workers as temporary to avoid giving them benefits. More workers will get direct job contracts with fair benefits.
Other Important Changes
National minimum wage rules are now stronger for all workers.
Gig and platform workers (like delivery or app-based jobs) will also get social security.
Workers can use Aadhaar-linked numbers to access their benefits easily.
New rules give paid leave for every 20 days of work.
Who Benefits the Most?
Fixed-term workers in industries like manufacturing, IT, construction, and digital media will benefit the most. Permanent employees still need five years of work to get gratuity.
Challenges to Watch Out For
Some companies worry about extra costs because more workers can now get gratuity sooner. Also, workers need to be aware of these new rules so they can claim their benefits.
The government and employers need to work together to make sure these new rules are followed and that the benefits reach the right people.
Why This is a Big Deal
This change recognizes the important work fixed-term employees do and gives them better financial security. It makes India’s labour laws more modern and fair.
Millions of workers will have a better future with this reform, making jobs more secure and respectful for all.
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