India Reduces Gratuity Eligibility Period from Five Years to One Year in Major Labour Law Reform

Nov 22, 2025 01:54 pm CST

The Indian government has implemented significant labour law reforms, reducing gratuity eligibility for fixed-term employees from five years to just one year of service. This change is part of a comprehensive overhaul that consolidates 29 existing labour laws into four streamlined codes, aiming to provide equal benefits to fixed-term and permanent employees while modernizing India's workforce regulations to align with global standards.