Fixed-Term Employees and Gratuity: Do New Labor Rules Offer Benefits Before 5 Years?

Dear Members, here I am sharing with you a notification published by the Ministry of Labour and Employment dated 16 March 2018. The notification amends the Industrial Employment (Standing Orders) Central (Amendment) Rules 2018.

Fixed Term Employment Workman

A fixed-term employment workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period:

Provided that:

- He shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him, even if his period of employment does not extend to the qualifying period of employment required in the statute.

Please suggest, according to the notification, whether gratuity will be applicable to fixed-term employees if their service is not completed for 5 years.

As per the notification, fixed-term employees are entitled to receive gratuity proportionate to the period of service rendered, even if their employment does not reach the 5-year mark. This means that if a fixed-term employee has completed a certain period of service, they are eligible for gratuity based on that duration, in line with the statutory benefits available to permanent employees. Therefore, gratuity would be applicable to fixed-term employees based on the duration of their service, as specified in the rules.