Dear All,
I just wanted know what is the purpose of yearly fixed term appointment (FTA)? Is this helpful for organization?
If project is continuously running from last several years and same employees are working in there. In case of termination or retrenchment before project completion does FTA are helpful?
Your solicit guidance will be highly helpful.
Thanks & Regards

From India, Jaipur
Dear Vinod,

In general, the necessity for Fixed Term Contract of Employment in any industrial organization arises because of the short term duration of a job and/or the requirement of specially skilled personnel to accomplish the work within a predetermined period. If no aspersions can be cast upon this arrangement, after completion of the work, the contract of employment comes to an end and the employee gets relieved from the services of the organization. The mutual rights and obligations of the parties to the contract are strictly as per the terms of the contract only.

However, after the amendment to the Industrial Employment ( Standing Orders) Central Rules,1946 recently, the employees under FTC are recognised as a class of employees who are on par with the regular employees of the organization and entitled to all the same conditions and benefits of employment. In addition, FTC employees are also entitled to proportionate terminal benefits like gratuity not withstanding the requirement of minimum qualifying service if any prescribed in any other law.

If the requirement is genuine, the FTC employment is beneficial to the employer and the employee concerned. It is beneficial to the employer in as much as it facilitates hiring selective, lays down well-defined terms of employment and makes separation peaceful. So far as the employee is concerned, he gets all the employment benefits on par with his regular counterparts and in addition, an FTC employee stays in a comfortable position to make his career planning.

Even though an FTC is co-terminus with work, in case of necessity, it can be extended periodically with mutual consent of the parties to such a contract.

In my opinion, the major disadvantage or demerit of FTC Employment system is that it is devoid of the sense of belongingness between the parties which is automatically created by a regular employer-employee relationship. Since separation is very simple in this arrangement, the organization loses talented hands in the long run, as the employee leaves the organization with a rich experience.

Therefore, whether adopted out of genuine necessity of work requirements or as a tactics, FTCE can only be a mixed blessing.

From India, Salem
Dear Umakanthan Ji Sb., Your opinion really helpful for us. Thanks & Regards Vinod
From India, Jaipur

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