All sectors can hire fixed term workers
OPENING UP Facility of hiring temporary workers only for apparel industry so far; Finance minister announces change in amendment
The government has extended the facility of hiring workers on a fixed-term basis to all sectors, in a bid to improve ease of doing business.
Players intending to hire people for completing specified projects, tasks or orders can now hire employees on a fixed term basis. This facility was available only for the apparel manufacturing sector as per the Industrial Establishment (Standing Order) 1946.
As per a notification issued by the labour ministry to amend the Order, words “fixed term employment in apparel manufacturing sector” will be replaced by “fixed term employment” meaning the facility would be available for all sectors.
In his Budget speech in February, Finance Ministry Arun Jaitley had said, “the facility of fixed term employment will be extended to all sectors”.
The fixed term employment facility was introduced in apparel manufacturing sector in Industrial Employment (Standing Order ) Act in October, 2016.
The concept of fixed term employment defines the tenure of employment as well as other associated conditions of service and remunerations, which are provided to regular employees under various labour laws.
The amendment to the Order provides that no notice of termination of employment shall be necessary in case of temporary and ‘badli’ workmen.
It also provided that a fixed term worker would not be entitled to any notice or pay in lieu of that, if his/her services are terminated or in case of non-renewable of contract or expiry of term of employment.
The amendment further stipulates that a temporary workmen who has completed three months of continuous service, shall be given two weeks notice of the intention to terminate his employment if such termination is not in accordance with the
NEW DELHI: THE CONCEPT OF FIXED TERM EMPLOYMENT DEFINES THE TENURE OF EMPLOYMENT AS WELL AS OTHER ASSOCIATED CONDITIONS OF SERVICE
terms of the contract.
In case he has not completed three months of continuous service, he shall be informed for the reasons for termination in writing.
It also provides that services of temporary employees shall not be terminated as punishment, unless he has been given an opportunity of explaining the charges of misconduct alleged against him.
The fixed -term worker would be entitled to all benefits like wages, hours of work, allowances and others statutory benefits, no less than a permanent worker.
Fixed term employment was defined as a workman who is employed on a contract basis for a fixed period. Thus, the services of the workman will be automatically terminated as a result of non-renewal of the contract between the employer and the workman concerned.
A separation of service of a workman as a result of non-renewal of the contract of employment between the employer and workman concerned shall not be construed as termination of employment.
This facility will aid the industry to employ workers in sectors which are of seasonal nature and witness fluctuation of demand, thereby requiring flexibility in employing workers.
Under the fixed term employment the working conditions in terms of working hours, wages, allowances and other statutory dues of a fixed term employee would be at par with permanent workmen.
A fixed term worker will also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even though his period of employment does not extend to the qualifying period of employment required in the statute.
The employer can directly hire a worker for a fixed term without mediation of any contractor.