Fixed-Term Employment Contracts for Foreign Subsidiaries: Gratuity After One Year Rule Explained (2026)
Fixed-Term Employment Contracts : Can a foreign subsidiary hire staff on short contracts in India without paying gratuity? Until recently, the answer was usually yes. The Payment of Gratuity Act, 1972 required five years of continuous service, so contract staff almost never qualified. That has changed. Fixed-term employment contracts now carry a pro-rata gratuity entitlement […]