Punjab govt allows fixed-term industrial employment

CHANDIGARH:THE Punjab government has allowed all industrial establishments in the state to hire workers on fixed-term contracts of any duration to promote ease of doing business.

A notification was issued by the labour department to amend the Indian Employment (Standing Orders) Punjab Rules, 1978, on Thursday to make a provision for fixed-term employment wherein workers can be hired by industrial units for any fixed duration for specific season or worker order, depending on requirement. The changes in employment rules, which were sought by industry associations for a long time, have made after approval from the state cabinet, allowing them flexibility in hiring workforce after enter into a written contract with them.

“Their hours of work, wages, allowances and other benefits will not be less than that of a permanent employee. They will also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him,” additional chief secretary, labour, Vijay Kumar Janjua said. The employers have been prohibited from converting existing permanent posts into fixed-term employment but they can do new hiring on contract.

Janjua said the rules were drafted in June and the notification was issued after following the due process of calling objections and suggestions. The Centre had also approved the labour code last year to allow companies to hire workers on fixed-term contracts for any duration.

In addition, the state government has exempted the industrial establishments engaged in continuous process industry from the provisions of the Punjab Industrial Establishment (national and festival holidays, casual and sick leave) Act, 1965, allowing flexibility to decide holidays. Micro, small and medium units have also been exempted from mandatory certification of standing orders under industrial employment rules.