New Labour Codes: Fixed-Term Employees Now Eligible for Gratuity After Just 1 Year
The government recently introduced the new labour codes to the labour laws on November 21, 2025. This code brings major changes to how employees receive bonuses, gratuity, and other benefits. One key change is that fixed-term employees are now eligible for gratuity after just one year of service, instead of having to wait five years. The definition of ‘wages’ has been expanded to include additional components, increasing gratuity payouts. Let us understand this change in detail.