Gratuity rules change: Workers to get benefits after 1 year and not 5, under new labour code

Published On 2025-11-22 12:39 GMT   |   Update On 2025-11-22 12:39 GMT

New Delhi (The Uttam Hindu): The Central Government has provided major relief to crores of workers in the country by replacing old labour laws and implementing four new labour codes. These changes will have a direct and positive impact on the economic condition and social security of the workers. With this decision of the government, about 40 crore workers of the country will now get basic facilities like minimum wage, timely salary, appointment letter and health security as a legal right. The government has clarified that its objective is to provide social justice to the workers as per international standards.

The biggest and most important change in the new rules is regarding gratuity and overtime. Until now, employees had to work continuously for five years in an organization to receive gratuity, but now 'fixed term employees' (those working on contract) will be guaranteed gratuity after just one year of service. Strictness has also been imposed on working hours. Under the new code, if an employee works beyond his fixed shift, he will be paid double the salary for overtime, which will curb the exploitation of workers.

The government has also placed special emphasis on social security and workplace equality. Under the new rules, women are guaranteed equal pay and respect as men. At the same time, it has been made mandatory for young people to provide appointment letters when joining a job, to prevent fraud. In terms of health security, workers over 40 years of age will receive a free health check-up once a year. Additionally, those working in hazardous industries will be provided 100% health security.

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