There is quite a confusion between the terms FTE and FTC and many believe the the recent sweeping changes in the Labour Codes, conferring better social securities especially right to gratuity on completion of one year (instead of existing 5 years) and also proportionate eligibility. Hence this piece of article. Gratuity for FTC Prior to Labour Codes As per Payment of Gratuity Act, the eligibility criteria for all employees, including fixed term employees (FTC) was 5 years continuous service Labour Codes Implication (effective 21st November, 2025) The Code of Social Security (CoSS) & Industrial Relations Code (IR Code) governs gratuity applicability for both FTEs and FTCs. A. The Code on Social Security Section 2(34), while defining fixed term employment, provides that a fixed term employee is eligible for all benefits, under any law for the time being in force, available to a permanent employee proportionately according to the period of ser...
Comments