HR Compliance
Fixed-Term Employment (FTE)
A contract category under Indian labor law where an employee is hired for a specific duration. Under the 2026 codes, FTEs are entitled to statutory benefits equal to permanent employees.
Key Takeaways
- Eliminates the need for third-party contractors.
- Requires "Equal Pay for Equal Work" compared to permanent staff.
- Entitled to Gratuity after just 1 year of service.
- Allows companies to scale labor based on project seasonality.
Ameena Abdurahiman
Subject Matter Expert (HR & Compliance)
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