The Indian government has tweaked the labour framework over the weekend, and one of the most significant announcements to come is that the minimum service requirement for receiving gratuity for a fixed-term employee is reduced to one year, from the previous five years. This move was celebrated by the IT industry forum, who said that it is 'a big win for IT employees who frequently switch jobs and earlier lost gratuity benefits.'
Maharashtra's Forum For IT Employees (FITE) took to social media to announce their approval on the new Labour Codes. "As per the new Labour Codes, the government has reduced gratuity eligibility from 5 years to 1 year — a big win for IT employees who frequently switch jobs and earlier lost gratuity benefits," the post read.
Earlier rules set by the Payment of Gratuity Act, a fixed-term employee is qualified for the benefit only after five years of continous employment. Now, that benefit can be availled after completing a single year of service.
Other reforms introduced with the new labour codes include mandatory appointment letters to all workers, social security coverage to all workers, incldung gig and platform workets, a free annual health check-up for all employers above teh age of 40, and timely wages made mandatory for all employers to boost morale and reduce stress.
The new Labour Codes also prohibit geneder discrimination, and ask employers to ensure equal pay for equal work.
Critical tech policy expert Anurag Awasthi also took to social media to laud the new labour codes.
While the new labour rules are lauded by most, especially the gratuity benefit for fixed-term employees, FITE was quick to point out all the missing points that are important and need to be addressed.
"Several critical IT-sector issues still remain untouched. 90-day notice period still not reduced to 30 days, causing huge stress for employees. PF accounts become dormant in just 3 years when employees go onsite or take career breaks, this must be extended till 58 years (retirement age). Workmen definition and Industrial Disputes Act are outdated and need urgent modernization for IT/Tech sector realities. No clear rules on layoffs, no protection mechanisms, and no mandatory compensation packages for affected employees," FITE outlined some of the issues.
FITE has also been a frontrunner in highlighting issues with unfair practices during layoofs at TCS, including denial of gratuity inspite of serving for more than 10 years, and force exits.
