Dinesh Divekar
Business Mentor, Consultant And Trainer
Umakanthan53
Labour Law & Hr Consultant
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Dear Experts, For Fixed term contract employment - does the compliance /statutory acts allow the employer to appoint people on fixed term.
Since these jobs are of regular nature. If we can appoint persons on FTC Employment, how may years can we go on extending the services.
please clarify.
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Dear Ehs Keshava,
The replies to your questions are as below:
For Fixed term contract employment, does the compliance /statutory acts allow the employer to appoint people on fixed term. since these jobs are of regular nature.
Reply: - As far as statutory deductions are concerned, there is no difference between Fixed Term Employment (FTE) and regular employment.
if we can appoint persons on FTC Employment, how many years can we go on extending the services?
Reply: - There is no ceiling as such on the number extension that can be given for the FTE. It depends on mutual convenience. If it suits both the parties, then you may go on renewing it.
Thanks,
Dinesh Divekar
Dear Keshava,
In general,there is no statutory restriction on Fixed Term Employment in respect of posts as well as establishments not covered by the Industrial Establishments (Standing Orders) Act,1946. In such cases, the employment rights and obligations are predetermined in the terms of the contract of employment only except the provision for gratuity under the Payment of Gratuity Act,1972. if applicable to the establishment.
In cases where the IE(SO)Act,1946 is applicable, the newly introduced Rule (3A) forbids the conversion of permanent posts as FTE on the date of commencement of the amended Central Rules,2018 i.e w.e.f 16-03-2018. Though the amended Rules ensure parity of service conditions with permanent workmen and proportionality of statutory benefits with the length of the FTE rendered to such contractual employees, it is silent about the extension of the contract on its expiry. Therefore, if the employee is willing, the employer can extend it as the situation demands.
Dear Keshav,
Fixed term contract of employment is totally legal and allowed as per the Indian statute.
It is purely contract for the agreed period mentioned under the same for the work described over there, at the end of the FTC employment will automatically come to an end if it i snot renewed before expiry.
It can be renewed fro the fixed period agreed mutually between employer and employee.
You can directly have fixed term contract of employment with candidate or
You can place them on the rolls of staffing companies by ensuring FTC is sign between staffing company and respective employee to be off rolled.
Thanks And Regards,
Compliance first
9769003570
Dear all,
What is the difference between retainership and fixed term employment job . In our company some employees are very near age of retirement .But we company wants to work with them . so what is the better option . I could not get anywhere where mention all about retainership just exception of esic or other labour law for the same .Therefore you are requested to suggest me in this context . So we can work accordingly
Dear Sapanasony,
Retainership is a contract for service between the client and the resource person whereas Fixed term Employment is a contract of service between an employer and an employee for a specified or predetermined period. In other words, retainership is a contract between a specialist and the client for a specified period requiring the expert services of the former as and when called for and the monetary consideration is called retainer fee paid in advance or on assignment basis devoid of employer-employee relationship. FTE is a form of employment with all the features of regular employment but lasting for a fixed term only.
Engagement of the services of the employees post retirement can be done in two ways - one is giving extension of services for a further period and the other is taking them as retainers depending on the earlier position held by them in the organization. In the former, they are entitled to all the statutory benefits of employment as specified in the relevant statute and in the latter they would not be employees subject to any labor law.
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