Gratuity BIG UPDATE: What comes as good news for fixed-term employees across sectors is that they now qualify for gratuity after a year of employment. Earlier employees were entitled to gratuity after completing five years. In a major revamp of India’s labour framework the central government has changed the rules and consolidated 29 existing labour laws into four labour codes. The Union Labour Ministry stated that the restructuring has been done with an aim to ensure better wages broader social security and enhanced health protection for workers. Gratuity Update: What Is A Fixed-Term Employee? When an individual is hired by a company under a contract that specifies an end date or terminates after the completion of the project. The new changes in the gratuity extend to informal workers platform workers migrant labourers and women employees.