Sunday, December 21, 2025 | 03:00 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Fixed-term contract staff to get gratuity benefits like permanent employees

Under the Gratuity Act of 1972, employees completing five years of continuous service are eligible to get a gratuity payment when they leave the organisation

Gratuity. Illustration by Binay Sinha
premium

Gratuity. Illustration by Binay Sinha

Somesh Jha New Delhi
In a first, workers hired under fixed-term contracts will be entitled to gratuity at any time of leaving the job.

Till now, no one hired on a contract for a fixed period was entitled to any gratuity. Those in permanent employment were entitled to it only after they had completed five years.

Under recently notified rules, workers hired through a fixed-term contract will get all the statutory benefits that permanent workers in the same establishment are entitled to. This includes employees’ provident fund and employees’ state insurance benefits, bonus, gratuity and other compensation in case of accidents or death while at work.

Under