Significant changes in gratuity rules now require employers to pay gratuity to fixed-term employees upon termination of their contract after one year of service.
These changes address key aspects of gratuity eligibility and calculation, offering clarity for both employers and employees.
The updated regulations specify the conditions under which gratuity payments are mandated, ensuring that fixed-term employees receive benefits comparable to those in permanent positions.
The method for calculating gratuity takes into account the employee’s tenure and last drawn salary, providing a structured approach to determining the final payout.
These revisions aim to provide a fairer and more consistent framework for gratuity payments, reflecting evolving employment practices.