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Updated on Jan 21, 2026education

What gratuity changes benefit fixed-term employees?

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Updated on Jan 21, 2026

Under the new labour codes, fixed-term employees (those on specific-duration contracts) no longer must work five years to get gratuity.

Now, if they complete just one year of continuous service, they become eligible for a pro-rated gratuity payout when their contract ends. This gives them earlier financial benefit, unlike earlier rules.

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