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Dear Seniors, I have one query, In X Company there are some workers in Regular roll and some are in fixed terms, Regular workers strength are very low then fixed terms, recently we have made wage agreement also for regular workman, now workers union demanding to consider converting fixed term workers as a Regular workman , my question is "whether it is necessary to consider there demand" management is not in a position to consider there request? How long we can keep them in Fixed Term.
From India, Hyderabad
Labour Law & Hr Consultant
+1 Other


Dear Venkatesh,
I do hope that either as an employer or as a HR manager, if you dispassionately analyze the concept of Fixed Term Contract Employment in any industry, you will certainly agree that it is only a stop-gap arrangement to effectively carry out some special or technical type of works lasting for a certain period for it facilitates hire and fire of such adhoc employees when the special work or the contract, as the case be, expires. Therefore, comparing to the number of regular workmen employed in the core activity of the establishment, the no. of FTC employees should be certainly far less only. Viewed from this perspective, your unqualified statement of admission that the no. of regular workmen in the establishment is far less than that of the fixed term contract employees is a glaring indication of unfair labor practice even though it is permitted under rule (3A) of the amended Industrial Employment ( Standing Orders ) Central Rules,1946 w.e.f 16-03-2018.
As it is, the FTC employees have no locus standi to demand for their absorption as regular employees on the expiry of their contracts; but the trade union can. You cannot justify rotating people endlessly on permanent jobs on FTC basis. Since it is evident that there is a miss-match in the ratio of FTC workmen and the regular workmen employed in the same or similar activities of the establishment, if the management outrightly refuses to accept the demand, the union can be successful when the dispute gets escalated to the stage of industrial adjudication.

From India, Salem
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I do endorse Mr.Umakanthan's answer to your query .

Let me supplement the following points

The employee hired on a fixed term basis, have the same rights as a permanent employee and therefore are entitled to; the same pay and working conditions, an equivalent or similar benefits package,

The fixed Term Employment contract shall be beneficial for some workers in Information technology Sectors, Manufacturing sectors, Textile Industries, Automobiles sectors where their skill sets are quite high but available for limited duration due to sudden high / sudden less demand in the market.

Although the legislation which came into existence in 2018 paves way for engagment of fIxed term employmnet in all sectors ( initially applicable to only Garment manufacturing sector) , yet the emloyers cannot use it as blanket permisison to use this category for lessre wages than what the regular workmen have been paid and for rotating the same workmen for any number of years . Further teh nature of jobs being handled by Fixed term workmen would definitely be under scanner.

Looking at the above , it is unfair on the part of employer to exploit workmen by engagiing them on fixed term basis repeatedly at a lower wage than what the regular workmne being paid.

What is more startling is the fact that your FTC workmen outnumbers regular workmen, which will not be keeping you in good stead.

There is therefore a strong case for the union to raise an industrial dispute which may culminate in favour of Union/workmen

It is high time your employer takes an appropriate and pragmatic decison as it is a thin end of the wedge



From India, Chennai
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