Fixed-Term Employment

Also called Fixed-Term Employee and Fixed-Term Contract

Hiring someone directly on a written contract for a set period, such as twelve months for a project, rather than as a permanent employee or through a contractor. India's Labour Codes recognise it formally.

Why it matters

Since 21 November 2025 a fixed-term employee in India gets the same wages and benefits as a permanent one doing the same work, in proportion to their tenure, and earns gratuity pro rata after one year rather than five. It is a clean way to staff a project, but no longer a cheaper one.

For example

A startup hires a data engineer on an 18-month fixed-term contract for a migration project; when it ends, she is paid gratuity for the year and a half she worked.

Go deeper

Labour Codes Go Live Trilegal · article A law firm's update on the Labour Codes that sets out what fixed-term employees are now entitled to, including pro-rata gratuity, and what employers should recalculate. Open trilegal.com →

Related terms

Labour Codes Fractional Executive Full-Time Equivalent

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