Payment of Gratuity to FTE (Fixed Term employees) - As per the New Labour codes

As per the New Labour codes, yet to be implemented, the FTE (Fixed Term employees) will be entitled to Gratuity after completion of only one year of service. I would like to know whether Non-FTE employees resigning after one year of service will be entitled to Gratuity. My Request to our esteemed reader to clarify the above.

Dear Gopalnanda,

Section 53(1) of the Code on Social Security,2020 states that gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.

However, a clear and explicit departure has been made from this condition in respect of certain type of employees as follows:
1) The first proviso to sec.53(1) reduces this minimum qualifying service to three years in case of working journalists journalists falling under the Working Journalists and Other Newspaper Employees Act, 1955.
2) The sixth proviso to sec.53(1) provides that in the case of an employee employed on fixed term employment OR a deceased employee, the employer shall pay gratuity on pro rata basis.

In all the above cases, the continuous service for the purpose of gratuity under the Code shall be calculated as explained in sec.54 of the Code.

Therefore non-FTE employees cannot have the relaxation from the minimum 5-years of qualifying service.

As per section 5 of Gratuity Act -Power to exempt says an eastablishment can exemot from payment of gratuty Provided employee's are in
receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.

My question is
1. What are pensionary benefits available that the company can carry out to exempt from Gratuity and what is the procedure to get the exemption?