Dear Friends,
Introduction of Fixed Term Contract Scheme
The Central Government, on the 8th of January 2018, passed a Draft Rule allowing employment under the Fixed Term Contract scheme in every sector. Previously, the Fixed Term Contract was only applicable to the Apparel sector. However, as a result of this Notification, employers can now recruit employees under the Fixed Term Contract in every sector.
Features of the Fixed Term Contract Notification
1. It will ease the business operations for employers.
2. There will be fewer obligations for contract employees compared to permanent employees.
3. Employers may engage employees under a Fixed Term Contract for their core business as well.
4. Gratuity may not be paid to contract employees, as a Fixed Term Contract will very rarely be extended to apply the Gratuity scheme.
5. There will be less negotiation or bargaining between the employer and Trade Unions regarding job security.
6. Employers are free not to engage the same employee again.
However, today in the Economic Times, it has been reported that the Government may review the Drafted Rules.
Any updates or further posts on the same will be highly appreciated. Please find attached the Fixed Term Contract Draft Rules Notification for your reference.
From India, Kolkata
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87Introduction of Fixed Term Contract Scheme
The Central Government, on the 8th of January 2018, passed a Draft Rule allowing employment under the Fixed Term Contract scheme in every sector. Previously, the Fixed Term Contract was only applicable to the Apparel sector. However, as a result of this Notification, employers can now recruit employees under the Fixed Term Contract in every sector.
Features of the Fixed Term Contract Notification
1. It will ease the business operations for employers.
2. There will be fewer obligations for contract employees compared to permanent employees.
3. Employers may engage employees under a Fixed Term Contract for their core business as well.
4. Gratuity may not be paid to contract employees, as a Fixed Term Contract will very rarely be extended to apply the Gratuity scheme.
5. There will be less negotiation or bargaining between the employer and Trade Unions regarding job security.
6. Employers are free not to engage the same employee again.
However, today in the Economic Times, it has been reported that the Government may review the Drafted Rules.
Any updates or further posts on the same will be highly appreciated. Please find attached the Fixed Term Contract Draft Rules Notification for your reference.
From India, Kolkata
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ESIC Draft Rules Notification for Increase Limit 21000.pdf