Blue Collared-Fixed term employment - Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (Rules)

Fixed term employment allowed in Blue collared sphere of Contract Staffing Industry
The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (Rules) notified by the Ministry of Labour and Employment (Ministry), vide notification dated 16 March 2018 (Notification).
Labour reforms introduced.
Fixed Term employment permitted across all sectors in the manufacturing field.
Industrial Employment (Standing Orders) Central Rules, 1946 amended by Notification.
Condition introduced no existing permanent employees can be converted to fixed term employees.

Attaching the FTC Notification for view by Members.

As per the definition Fixed Term Employee in the amended Industrial Employment (Standing Orders) Central Rules, 1946 – by Notification sub para (h) A “fixed term employment workman” is a workman who has been engaged on the basis of a written contract of employment for a fixed period:
Provided that-
(a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman; and
(b) he shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute.
Points to be noted:-
1. There should be a written contract i.e either an appointment letter with the acceptance of the fixed Term Employee or a Fixed Term Employment Agreement or Contract signed by both the employer and Fixed Term Employee.
2. There should be a fixed period i.e starting date and end date in the written contract i.e either an appointment letter with the acceptance of the fixed Term Employee or a Fixed Term Employment Agreement or Contract signed by both the employer and Fixed Term Employee.
3. Hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman employed for the same job.
4. Fixed Term Employee shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute.
V.Sounder Rajan
HR & Employment Law Attorney
Specializing for Recruiting and Contract Staffing Industry
M: 98401-42164