Workers can be hired for fixed term across sectors, says govt

MOVE COULD PROVIDE FOR A HIREANDFIRE POLICY BY DOING AWAY WITH CURRENT NORMS

NEW DELHI: The government has decided to allow fixed-term or contractual employment in all industrial sectors, a provision that until now applied only to apparel manufacturing.

The move, once implemented, will effectively provide for a hireand-fire policy by doing away with existing retrenchment norms applicable to factory workers.

The proposed amendment, which fulfils a longstanding demand of the industry, is in line with the government’s overall aim of amending labour laws to improve the ease of doing business in India.

According to a notification to amend the Industrial Establishment (Standing Order) 1946, issued by the labour ministry, the words “fixed-term employment in apparel manufacturing sector” will be replaced by “fixed-term employment”, implying that hire-fire provisions will be appli- cable to all sectors.

The move was first proposed in the Union Budget speech of finance ministry Arun Jaitley on February 1, in which he said “the facility of fixed-term employment will be extended to all sectors”.

After the amendment, “no notice of termination of employment shall be necessary in the case of temporary and workmen”. Fixed-term workers, however, would be entitled to all benefits like wages, hours of work, allowances and others statutory benefits, equivalent to those given to permanent workers.