The Gratuity eligibility for Fixed Term Employment is after one year instead of five years.
As per the 2nd proviso of rule 34(1)(a) of the Code on Social Security (Central) Rule, 2025, published in G.S.R. 935(E) dated 30-Dec-2025, an employee on Fixed Term Employment shall be eligible for Gratuity, if he renders service under the contract for a period of at least one year.
For subsequent period in excess of six months and more, but less than one year, shall be rounded off to one additional year.
Accordingly, the Gratuity eligibility for Fixed Term Employment is after one year instead of five years.
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