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Dear Seniors,
There is recent amendment made in Industrial Employment (Standing Orders) Central (Amendment) Rules where Fixed Term Employment has been introduced. To use fixed term employment in our company;
1. Does we need to insert the term "Fixed Term Employment" in our certified standing orders and get them re certified from Labor authorities?
2. Or this will be included by default in our factory standing order without need of re certifying as this amendment is made in central legislation. Would it be legally valid in case of any dispute?
Kindly clarify?
Mahesh Kumar

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Dear Maheshkumar,
No possibility of automatic application of the amended model standing orders by default to an establishment already having certified standing orders.
Since there can be no question of inconsistency between the model standing orders and the certified standing orders, the management should move for an amendment u/s 10(2) of the IE(SO)ACT,1946 for the inclusion of the classification of FTC employees.
Thank you for your valuable advise.
Mahesh Kumar
Dear Mr. Mahesh Kumar,
While you initiate necessary action, in line with the Guidance given by Respectable Mr. Umakanthanthe, in respect of the said Amendment gazetted and referred by you, please also ensure that your Employer/you do incorporate the Provision in Section 19 of the Sexual Harassment of Women at Workplace (P, P &R) Act 2013 to the effect that Sexual Harassment shall constitute/amount to an Act of Misconduct punishable as prescribed in the Certified Standing Orders applicable to your Establishment.
Surely, your Employer would have by now incorporated the said Provision yet in case not done so, please do it Now.
Kritarth Team of Spl Educators,
Kritarth Consulting Pvt. Ltd
Bengaluru Centre
There is no provision to read into your Certified Standing Orders, the amendments made in Model S.O. or the I.E.S.O. Act. So you have to incorporate it to make use of the provision. However, till that time the fixed term appointments are not illegal per se. Now, whether you want to book together all the amendments in Model S.O. so far or to specifically go for this enabling provision only, is a matter of choice, reckoning the process of amending the Standing Orders.
Yes it will require re-certification if you going to hire Fixed Term Workmen. There is a bar for converting Permanent workmen to Fixed Term.So it can be only for new appointees.
Dear Member,
It is absolutely necessary to amend the CSO to include the provision of FTE. Please also check, whether any state rules notification has been issued in this connect. Because, the amendment is made in the Central Rules, the state government should take initiative to extend this provision to their rules. There is no automatic provision or application.
Yes -unless the Company's Standing Orders provide for a separate classification for Fixed Term Workmen the hiring cannot be done.
Fixed term employment allowed in Blue collared sphere
The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (Rules) notified by the Ministry of Labour and Employment (Ministry), vide notification dated 16 March 2018 (Notification).
Labour reforms introduced.
Fixed Term employment permitted across all sectors in the manufacturing field.
Industrial Employment (Standing Orders) Central Rules, 1946 amended by Notification.
Condition introduced no existing permanent employees can be converted to fixed term employees.
Dear All,
I would like to join the discussion and in my point of view, rule of the land prevails and becomes applicable to each and every employer / employee that have been affected by the introduction of FTC. If in case it is not included in the CSO, I think it will make hardly any difference as the rule becomes applicable across India. Yes State Governments should accordingly have to give notification to that effect and make applicable in their respective states. I too agree that to be on the right side of the law, it is advisable to make changes in CSO, however if the union objects and does not allows the change then what will happen ? Rule of Land Prevails, as such I think its not an inescapable situation. CSO can continue to remain un-amended and FTCs can be employed.
Please express yourself.
Manish S Joshi
Dear Mr.Manish,
I don't think that the Trade Union's objection, if any in this regard can stand in the way of amendment which is purely based on the statutory amendment to the Rules. Certainly such an objection would be over ruled. On the contrary, if the Employer tries to introduce the system of FTC Employment without amending the existing CSO, the Union's objection to that move, if any can become valid. Therefore, I would like to reiterate the need for such an amendment to avoid unnecessary disputes in this regard.
Dear Mahesh,
If your establishment's standing order does not consist of provisions regarding Fixed Term Employment, then it wise decision to amend same.
Thank you.
Girish Vivalkar
Indian Labour Law and Human Resource by GIRISH JAYRAM VIVALKAR
Some fellow members seem to have a reservation that the union will object to fixed term employment whilst seeking amendment to Certified standing orders before the Certifying officer . Since there is a central legislation on FTE, the Certifying officer is empowered to overrule the unions' objections and go ahead with insertion as sought by employers . In any case , we should attempt to engage workmen on fixed term without having suitable amendment in CSO , failing which union will be up in arms and you will be forced to retrace your steps fearing major industrial Relations break down. The law enforcing authority may not accept your unilateral move in this regard
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