It’s a good news for the service class as the government is mulling to reduce the time period that makes a worker eligible for gratuity. Sources told Zee Media that the government can reduce the time period from 5 years to 3 years.

Sources said the Labour Ministry is considering a proposal that suggests that gratuity should be paid within three years of employment with the employer. The ministry is in discussion with all the stakeholders in the case.

The sources further said that it is only a matter of time that the time period is reduced. This is due to the issuance of the notification on fixed-term employment, which makes it mandatory for an employer to give all the benefits of a permanent employee to fixed-term employment. This includes the gratuity benefit.

According to the Gazette Notification’s Schedule 1A’s paragraph 3 says that the fixed-term employees will get all the benefits extended to permanent employees. This means that an employee will get gratuity in proportion to the number of years he/she has worked with a company.