Rohitaashv Sinha shares key insights on the recently announced reform reducing gratuity eligibility to one year for fixed-term employees

In a detailed analysis featured in a recent News18 India article titled “Gratuity Eligibility Cut To 1 Year For Fixed-Term Employees: Are Existing Workers Eligible Too?”, Rohitaashv Sinha clarified that the legislative intent behind the amendment suggests retrospective applicability. He noted that employees who have already completed one year of continuous service under fixed-term contracts are likely to “fall within the scope of this benefit once the new provisions take effect.”

Rohitaashv, however, emphasised an important nuance: the eventual implementation will depend on how individual employers interpret “continuous service,” particularly in cases where fixed-term contracts are renewed periodically. This aspect, he indicated, may influence eligibility assessments in real-world scenarios.

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