Supreme Court: Employees Who Resign or Retire After 5 Years’ Service . . . In a significant ruling strengthening employee rights in India, the Supreme Court on December 9, 2025, held that any employee who resigns or opts for voluntary retirement after completing at least five years of continuous service is entitled to gratuity under the Payment of Gratuity Act, 1972
New gratuity rules decoded: Are permanent employees also eligible for . . . New labor codes have sparked interest in gratuity rules, with fixed-term and contract workers now eligible after one year of service This change, however, does not extend to permanent employees, who still require five years of continuous service to qualify for gratuity benefits
Supreme Court Rules: Gratuity Must Be Paid After 5 Years Even on . . . In a landmark ruling, the Supreme Court of India has held that employees who resign or opt for voluntary retirement after completing five years of continuous service are entitled to gratuity under the Payment of Gratuity Act, 1972
Gratuity Eligibility in India: 5 Years of Continuous Service The notion that gratuity eligibility requires a strict 5-year continuous service period is outdated and legally questionable Employees with 4 years and 240 working days of service are entitled to gratuity as per the Payment of Gratuity Act and multiple Supreme Court and High Court judgments
Contractual vs permanent: New eligibility rules - New Labour Law 2025 . . . Permanent employees still need five years of continuous service for gratuity But fixed-term employees (FTEs) or contractual employees can now receive gratuity after just one year of service The calculation method stays the same for both categories, only the eligibility period differs
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