1-Year Gratuity Stalled: Why New Labor Code Benefits Aren't Reaching Employees Yet

• New labor codes proposed gratuity after 1 year for fixed-term employees, replacing the 5-year rule.
• Implementation is stalled because state governments haven't notified their own rules, as labor laws are on the Concurrent List.
• Companies continue to follow the old 5-year gratuity rule to avoid legal issues and lack clear guidelines.
• Ministry of Labor confirms the 1-year gratuity is policy-level until states act.
• Other reforms like salary structure and social security for gig workers are also delayed due to state inaction.

Why It Matters: New 1-year gratuity rule is stalled; employees still under old 5-year rule until states act.