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FIXED-TERM EMPLOYMENT RULES (Benefits of Fixed-Term Employment (Fixed…
FIXED-TERM EMPLOYMENT RULES
Background
Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 in March notification allowed all industries to hire workers on contract with a fixed tenure
Since, labour is a concurrent list subject and without a Parliamentary ratification, States are not really obliged to follow these orders
In order to plug this gap, the Central Government has asked the states to issue separate notifications
Benefits of Fixed-Term Employment
Fixed wages and work conditions
Accountability
Forecast labour costs
Short term Employment shortage
Commercial Competitiveness
Job Creation
Criticism against the move
Hire-and-fire
Removal of Safety nets
Undermines Job Regularisation
Against the earlier judgments of Supreme court
The Supreme Court has ruled earlier that a fixed-term contract worker who had worked for 7 years should
Industries will be converted into Sweatshops
What needs to be done?
FTE conditions need to be defined clearly to make them acceptable to both employers and employees
norms should be arrived at in a transparent, consensual manner
Since labour comes under Concurrent list, a suitable and well discussed legislation for FTE should come through Parliament
What is fixed term employment?
FTE is a contract in which a company hires an employee for a specific period of time
The employee is not on the payroll of the company
Their payment is fixed in advance and is not altered till the term expires