Fixed Term Employment Draft Rule: What Does It Mean for Your Workplace?

Dear Members!

The government issued a Draft Rule notification under the Industrial Employment Standing Orders Act for "Fixed Term Employment" in every employment.

This proposed amendment to the IE(SO) Central Rules, 1946 defines the term "Fixed Term Employment" through its newly inserted sub-paragraph (da), inter alia, categorically mentioning the statutory rights available to such FTE employees in its provisos (a) and (b).

Effects of the Amendment

The effects of this amendment, in my opinion, are that:

(a) Not only the hours of work but also the gross wages of the FTC employees should remain on par with the permanent employees during the entire period of FTC as allowances have also been included in clause (a) to the proviso. Therefore, the employer cannot stick to the remuneration clause of FTC whenever upward revisions of the components of the wage structure of the permanent workmen are effected.

(b) An inference is rendered possible by virtue of clause (b) to the new proviso (da) that terminal benefits like gratuity should also be calculated and disbursed to FTC employees proportionately even if the tenure of the fixed-term contract falls below the qualifying period of service specified in the concerned statute.

Comments are solicited.

Dear Members,

It is a beneficial provision to be inserted in the Industrial Standing Orders for both the employer and employee who work under FTC. The insertion of this provision enables the FTC employee to receive terminal benefits. It doesn't mean the employer can keep FTC employees on a perennial nature of work. The objects and reasons are meaningful.

How many times can an employee renew their contract, or what is the maximum number of renewals allowed for one employee?