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

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 hire-and-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 applicable 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”.