Gratuity payment after one year of service: Modi govt plans this for fixed-term employees

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Published: May 15, 2020 10:22 AM

In a press conference on Thursday, Finance Minister Nirmala Sitharaman talked about various measures in the proposed Labour Codes for the benefit of workers, including on Gratuity payment for Fixed-term Employment.

Gratuity payment,covid 19 pandemic, nirmala sitharaman, how to get gratuity payment, Fixed term Employment, Labour Codes, unorganised workers, National Floor Wage, minimum wages, ESIC coverageIn the proposed Labour Codes, she said there is a provision of gratuity on completion of one year service as against the current five years condition.

Gratuity payment after one year of service: The Union government has proposed several social security measures for workers hit by the COVID-19 pandemic. In a press conference on Thursday, Finance Minister Nirmala Sitharaman talked about various measures in the proposed Labour Codes for the benefit of workers, including on Gratuity payment for Fixed-term Employment. In the proposed Labour Codes, she said there is a provision of gratuity on completion of one year service as against the current five years condition. When implemented, this will benefit workers who lose or leave jobs before five years.

Other provisions in Labour Codes:

Sitharaman listed out several other provisions in the labour codes:

– Social Security Scheme for Gig workers and Platform workers will be launched. A re-skilling fund will be introduced for retrenched employees.

– The FM said that all occupations will be opened for women and permitted to work at night with safeguards. There will be provision for Social Security Fund for unorganised workers.

– There will be universalization of right of minimum wages and timely payment of wages to all workers including unorganized workers. Presently, the minimum wage rule is applicable only to 30 per cent of workers.

– A statutory concept of National Floor Wage will be introduced. This will reduce regional disparity in minimum wages. The fixation of minimum wages will be simplified.

– All workers will be provided appointment letters to promote formalization. There will be annual Health Check-up for employees.

– Definition of inter-state migrant worker will be modified to include migrant workers employed directly by the employer, workers directly coming to destination State of their own besides the migrant workers employed through a contractor.

– There will be portability of welfare benefits for migrant workers.

-ESIC coverage will be expanded pan-India to all districts and all establishments employing 10 or more employees as against those in notified districts/areas only. ESIC coverage will be expanded to employees working in establishments with less than 10 employees on voluntary basis. There will be mandatory ESIC coverage through notification by the Central Government for employees in hazardous industries with less than 10 employees.

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