Is Fixed Term Contract Leagel In Hotel Industry In Kerala? - CiteHR
Industrial Relations And Labour Laws
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Dear Sir, I would like to know that, is fixed term contract leagel in kerala state hotel industry? please advice...
Lok Shabha/Raja Shabha had referred to the issue of "FIXED TERM CONTRACT" issue to standing committee as the labour union protested against the said clause in "Industrial EMployment Standing Orders Act" . On the receommendation from the "committee", the said clause had been struck down.
So, in my opinion, Kerala state don't have such provisions.

Engaging workmen for a Fixed Term is not illegal as per statute provided it is not to deter any statutory right of employees. Therefore, if you give them EPF, ESI and consider the period of starting the initial contract as date of appointment for the purpose of eligibility for maternity benefits, gratuity etc then there seems to be no violation of law by the employer. Certainly, continuously engaging workmen as casual workers or temporary workers will be 'unfair' under the provisions of the Industrial Disputes Act.

Dear Sir,
Meny of the star hotels in kerala is following the system of FTC employment, like one year contract. and the contract will come to an automatic end on the expiry of the contract. Then the said employee would be continued on job on a daily basis for one month and again their cotract will be restarted after one month for next one year. Likewise there are employees working for 3 to 8 years continuely. is there any possibility to claim permenency for them?. Most of them are getting EPF, ESI fesilities but no gratuity.

Fixed Term Contracts can be offerred to people against positions whoch are also similar in nature. Like Casual Workers are engaged for work of casual nature.
If FTC is offerred to people against positions which are permanent in nature, then it will not be a fair practice.
Vasant Nair

For FTC employees Gratuity cannot be denied.Unfortunately if they claim they will be saved .Therefore it is a hobson"s choice between continuity of employment and losing the job.Though it may be legal it may not be practical unless the issue is taken up by some Union or Association.
With Regards
E-mail : rajanassociates@eth,net,
Mobile : 9025792684.

As already stated FTC should not be used to misuse law. At the same time, the employer who engages workmen on FTC after giving a few days break is unaware of the fact that renewing employment contract every year or giving a break of one or two weeks will not make the employees uneligible to gratuity since for gratuity a total working of 240 days in a year is sufficient to constitute continuous service. Therefore, if an employee who has worked at least for five years with every year contributing to 240 days is entitled to gratuity when he leaves the establishment. It is the responsibility of the employer to pay gratuity even if the employee(s) is unaware of it.

Thank you very much for your advice sir, also i would like to know that, is there any chance for cailming permenency for this kind of FTCs if they have worked for 240 days in a year?
"Fixed Term Contract" is not prohibited, as extended limb of Sec.2(oo)(bb) of I.D.Act. But the nature of job should be in such way that it should expire within the "Fixed Term" else it would be termed "unfair labout practise" Hence, to avoid any such misuse, Parliament had struck the FTC provisions in the Ind.Emp.Standing ORders Act.
Claiming permanency is a different topic. But an employee under FTC will exercise all rights as given in the ID Act in respect of lay off compensation, retrenchment benefits, compensation in case of closure etc, provided he has worked at least for 240 days immediately preceding 12 months of such lay off, retrenchment or closure, as the case may be and the period of expiry is yet to take place. That means, he will not be entitled to these rights if the closure or retrenchment takes place on a date on which he is suppose to complete his prefixed date of expiry of contract.

At the same time, being permanent in job has a different interpretation in labour law. That is, an employee who is engaged in a job of permanent nature or which is not temporary in nature is said to be a permanent employee. Therefore, a fitter or welder in an automobile unit is doing some permanent job. Similarly, a Chef or Steward in a Hotel is also engaged in a permanent job, whereas, a worker who does painting the walls of a factory or hotel or one who attends some maintenance work which the maintenance mechanic of the company can not do due to the nature of work involved is not doing a work of permanent nature. The latter is a temporary employee. When a worker engaged in a permanent job satisfies the basic requirements of 240 days or such other parameters fixed by the management and as provided in the Standing Orders of the company, he will become a confirmed employee.



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