Understanding Fixed-Term Employees: Are There Gratuity Deductions Involved?

Hi, sir/Madam, could you please explain the meaning of a fixed-term employee and if there is any deduction of the gratuity amount?

Hi,

What is Fixed-term Employment?

Fixed-term employment refers to a contract of employment in which a company hires an employee for a specific period of time. This contract is subject to renewal after its expiry, based on the company's requirements. If the employment contract extends for a longer period, including the renewal of the contract period without any break, the employee becomes eligible for gratuity when the total contract period exceeds 5 years. This eligibility is provided that the employee has worked for the employer on a full-time basis and not on a part-time basis.