Contract and fixed-term hiring in games after India's 2025 labour codes

Summary

This paper explains business practice. It is not legal advice. Check your contracts with a labour lawyer or chartered accountant.

From our own data:

• Of the games candidates we spoke to in 2026 who stated a preference, 147 wanted full time roles and 16 wanted contract work. 27 were freelancing at the time of the call.

• In our LinkedIn chats this year, about 100 candidates asked whether a role was full time, contract or freelance.

• Candidates on contract roles keep asking us the same things: health insurance, paid leave, and whether a 12-month renewable contract can turn into a full time role.

1. What changed on 21 November 2025

The government brought four codes into force: the Code on Wages, the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code. These points matter most for studios:

1. Fixed-term employees get parity. People hired directly by you for a set period are to get the same wages and benefits as permanent staff doing similar work, including leave, medical benefits and social security.

2. Gratuity after one year for fixed-term staff. Permanent employees still need five years, and fixed-term employees qualify pro rata after one year of continuous service. Some reports of the Labour Ministry's FAQ tie this to people who join on or after 21 November 2025, so check how it applies to your existing staff.

3. A single definition of wages. If allowances and other excluded parts go above half of total pay, the extra counts back as wages. This affects PF and gratuity, and can change take-home pay.

4. Gig and platform workers are defined in law for the first time, with social security schemes and a fund planned for them. This mainly affects platform businesses.

2. Three kinds of "contract" role

• Fixed-term employee: Who employs the person: Your studio, on payroll, for a set period; What the codes mean in practice: Parity with permanent staff in wages and benefits; gratuity after one year; Typical games use: 6 to 12 month project roles, live-ops support

• Independent consultant or freelancer: Who employs the person: Nobody. They invoice you; What the codes mean in practice: Not an employee if the relationship is truly independent. You pay fees, not salary; Typical games use: Art outsourcing, short design tasks, audio

• Third-party contract staff: Who employs the person: A staffing firm, deployed to you; What the codes mean in practice: The staffing firm is the employer; you may still carry some responsibility; Typical games use: QA batches, support teams

The risk lies in calling someone a freelancer while treating them like an employee: fixed hours, your laptop, your manager and your leave rules, for months. If that person is a fixed-term employee in substance, the parity and gratuity rules may apply. Decide the model on purpose, and write the contract to match how the work will run.

3. What candidates tell us about contract roles

• Benefits come up first. A recurring concern was that a remote contract had no standard employee benefits or paid leave. For many candidates, health cover decides it.

• Security comes next. Candidates asked whether a "12-month renewable" contract was really renewable, and what decides conversion to full time.

• Equipment matters too. One contract brief required candidates to bring their own laptop and equipment, which candidates need to hear before their CV goes in.

• Freelancers often want stability. About 25 candidates named a full time role after contract or freelance work as their reason for looking. Freelancers also asked for smaller hikes, about 20% at the median, against 34% overall.

4. A practical playbook for studios

Before you open the role:

1. Pick the model based on how the work will run, and not on what looks cheapest on paper.

2. For fixed-term roles, budget for parity: the same benefits as permanent staff in a similar role, plus pro rata gratuity if the person stays a year.

3. Check your salary structure against the new wage definition before you make offers.

In the job description:

1. State the contract length, the renewal terms and whether conversion is possible.

2. State leave, health insurance and equipment at the start.

In the contract:

1. For consultants: clear deliverables, fees, IP assignment, confidentiality and no control over working hours.

2. For fixed-term staff: the same policies as permanent staff, an end date and a renewal process.

During the engagement:

1. Review conversion at a fixed point, for example month 6, and tell the person the result.

2. Do not let a "3-month contract" roll on for a year without changing the paperwork.

5. For candidates: questions to ask about any contract role

1. Am I a fixed-term employee on your payroll, a consultant, or employed by a staffing firm?

2. What leave and health insurance do I get?

3. What happens at the end of the term? Who decides renewal or conversion, and when?

4. Do I need my own laptop and software licences?

5. How is TDS handled, and when am I paid?

6. If fixed-term: does the gratuity rule after one year apply to me?

Sources

• Code on Wages, 2019, and Code on Social Security, 2020.

• Labour codes in force from 21 November 2025, fixed-term parity and one-year gratuity: Ministry of Labour and Employment FAQ, as summarised by HRStop, Kredily and Finin2Min.

• Playdawn data: anonymised games candidate calls, February to October 2026, LinkedIn conversations, May to November 2026, and anonymised client briefs.