Under the Industrial Relations Code, 2020, which of the

Solution

Section 2(o) of the Industrial Relations Code, 2020 defines fixed term employment as engagement of a worker on the basis of a written contract for a fixed period. One of the most significant features of fixed term employment under the Code is that such employees are entitled to all statutory benefits including ESI, PF, bonus, wages, and crucially gratuity on a pro-rata basis proportionate to their period of service, just like permanent workers. This is a landmark departure from earlier practice where fixed term employees were routinely denied gratuity. Since their employment automatically ends at the conclusion of the fixed period, no notice or retrenchment compensation is required upon non-renewal, which is an important distinction from permanent workers. The employer also cannot renew fixed term employment indefinitely for work of a permanent nature to circumvent the rights of workers. Fixed term employment is now available across all sectors, unlike earlier when it was restricted to specific industries.