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 […]
How to Handle Gratuity Liability for Employees Joining a Foreign Subsidiary After Labour Code Changes 2026
Managing gratuity liability for a foreign subsidiary has become more complex since India’s four Labour Codes took effect on 21 November 2025. Gratuity now sits under the Code on Social Security, 2020, and the rules have changed for fixed-term staff, wage definitions and transferred employees. This matters to foreign parent companies hiring in India, MNCs […]