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The Draft Code on Social Security (Central) Rules, 2025, frames its provisions in the language of transparency and digitisation. Yet, under the guise of high-tech administrative neutrality, the Union government appears to be fundamentally altering the nature of employment tenure. A close examination of Rule 34, which governs the application for and payment of gratuity, suggests a shift that prioritises procedural efficiency over worker security.

To the casual observer, Rule 34 might appear to be a series of administrative updates. However, critics argue it constructs a complex framework that manages deferred wages in a way that risks diluting established labour rights.

The most significant reform in Rule 34 is the introduction of pro-rata gratuity for Fixed-Term Employees (FTEs). Rule 34(1)(a) explicitly states that an employee on a fixed-term contract shall be eligible for gratuity if they render service for at least one year. Previously, the five-year continuous service requirement acted as a barrier to arbitrary dismissal, creating an escalating financial liability for the employer as a worker’s tenure increased.

The government presents this one-year threshold as a benefit to the precarious worker. In reality, it may act as a structural subsidy for a “hire and........

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