Fixed Term Employment - Clarification

Dear HR Jambavans,

Kindly let me know the benefits like increment, leave entitlement etc for the employees who are in Fixed Term Employment.

Awaiting your reply.

Mangai

You mean to say- they are on temporary employement? They on on contrct employment? They are on specific project based employment.

Whatever it is, leave can be as per the local Shops & establishement act/ Factories act.This can be minimal one. Basically they can be given PL- 12 days per year; CL-6 days'; SL- 6 days. [ just for reference].

Incentive is based on company's policy. But can be given to them.

Regards

Sathiyamoorthy iyer

Dear smvsiyer,

I am talking about the people who are on 3 years fixed term employment, but in our regular rolls only. They have completed one year.

Please clarify whether they are eligible for regular increments, leave encashment and so on.

Mangai

Dear Seniors,

There was no reply on clarification for the benefits entitled to the employees on fixed term employment.

Pls somebody try to help me out.

Mangai

Dear Mangai,
You have to follow law. Law does not differentiate between short term employment and permanent/long term employment. Word fixed term is not correct as all employments are of fixed term nature i.e. you employ an employee maximum till age of retirement (sometimes you give extension but that is also fixed).
No law says that you have to give increments to your employees whether of short term nature or long term nature. Law only says you can not give less than minimum wage. But if you are giving increments to your permanent/long term employees and not giving to your short term employees who may be doing similar nature of work, then you would violate the law (discrimination?).
Similarly for Leave encashment. Factories Act provides for minimum 30 days accumulation and encashment. You have to follow same in case of both short term employees and long term employees.
Similarly you can find out about other issues.The only difference between short term employee and long term employee is that short term employees are engaged for such jobs which are going to last only for some time. Otherwise there is no difference.
KKT