New Labour Codes 2025: What Permanent Employees Need To Know About Gratuity After 1 Year Of Service

The new labour codes notified by the government last week have created interest around the gratuity rules, with the reforms designed to help the contract workers and fixed-term employees. “The one-year gratuity eligibility rule is a new entitlement specifically created for fixed-term employees and does not apply to permanent employees. The standard eligibility period for permanent employees remains five years of continuous service. The only exception for the five-year rule for permanent employees would be in cases of employee death or disablement,” Preetha Soman, partner, JSA Advocates and Solicitors. Read more