The new wage code won't get you gratuity after two years

Recently, a colleague excitedly told me, “Thanks to the New Wage Code, I’ll finally get my #Gratuity payout!”
He had just resigned after completing a little over two years in the company.
Unfortunately, I had to break the news: he still isn’t eligible!

The reduced tenure requirement applies only to fixed-term employees (contract roles), not regular full-time employees.
For all permanent employees, the old rule continues: a minimum of 5 years of continuous service.
Perplexed, he replied, “But every #influencer online is shouting about this rule change!”
Well… that’s the problem, most influencers react to the headlines, and rarely go through the details!

While in this case, the government also needs to be blamed, instead of making things clearer, the new labour codes end up adding more complexity, at least in the case of Gratuity!

Fun Facts -
- Fixed-term employees (contract roles): Eligible for Gratuity after 240 days of continuous service. Would we see much shorter contractual assignments now?
- Regular full-time employees: Still need 5 years to qualify!
- For most Private employees, “Gratuity” is part of your CTC, but if you leave before 5 years (as a regular employee), that amount simply goes back to the employer!
- Even the 5-year rule is not implemented uniformly; some companies follow 4.5 years, some have a strict 5-year cut-off, to make the employee eligible for the payout!