Understanding Employee Benefits in Fixed Term Employment: What Are Your Rights?

Dear HR Experts,

I kindly request clarification on the benefits for employees under Fixed Term Employment. These benefits include, but are not limited to, increments, leave entitlements, and so forth. I am eagerly awaiting your response.

Best regards,
Mangai

You mean to say - they are on temporary employment? They are on contract employment? They are on specific project-based employment. Whatever it is, leave can be as per the local Shops & Establishment Act/Factories Act. This can be minimal. Basically, they can be given PL - 12 days per year; CL - 6 days; SL - 6 days. (Just for reference). Incentive is based on the company's policy but can be given to them.

Regards,
Sathiyamoorthy Iyer

Dear smvsiyer,

I am talking about the people who are on 3 years fixed-term employment but in our regular roles only. They have completed one year. Please clarify whether they are eligible for regular increments, leave encashment, and so on.

Mangai

Dear Seniors,

There was no reply regarding clarification on the benefits entitled to employees on fixed-term employment.

Please, could somebody try to help me out?

Mangai

Dear Mangai,

You have to follow the law. The law does not differentiate between short-term employment and permanent/long-term employment. The term "fixed term" is not correct as all employments are of a fixed-term nature, i.e., you employ an employee maximum until the age of retirement (sometimes you give extensions, but that is also fixed).

No law states that you have to give increments to your employees, whether of short-term nature or long-term nature. The law only specifies that you cannot pay less than the minimum wage. If you are giving increments to your permanent/long-term employees and not to your short-term employees who may be doing similar work, then you would violate the law (discrimination?).

Similarly, for leave encashment, the Factories Act provides for a minimum accumulation of 30 days and encashment. You have to follow the same in the case of both short-term employees and long-term employees.

Similarly, you can find out about other issues. The only difference between short-term employees and long-term employees is that short-term employees are engaged for jobs that will only last for some time. Otherwise, there is no difference.

KKT