Applicability of Model Standing Order/ Industrial Disputes Act for Factories having less than 50 employees in Uttar Pradesh.

We have Factory in Uttar Pradesh. We have less than 50 employees.
Is Model Standing Order/ Standing order or Industrial Disputes Act applicable to our Factory.
Can we issue appointment letter to workers/staff for Fixed Term employment of say 2 years.
Regards.

As you have employed less than 50 employees, Certified Standing Orders are not necessary.
However, you can download model standing orders from the State Labour Department website
and exhibit a copy of the same in the notice board of the company/factory.
As regards issuance of appointment orders, you can issue appointment letters to workers/staff.

However, you can download model standing orders from the State Labour Department website
and exhibit a copy of the same in the notice board of the company/factory. - Sir My question is - Is it mandatory to have model standing orders in Our Case.
We can Issue Appointment letter. There is no issue in it. Issue is can we have Fixed Term employment in Uttar Pradesh,

Industrial establishments having a workforce of 50 or above, need to comply with Industrial Establishment (Standing Orders) Act., and it is mandatory to have certified standing orders of company which need to be displayed on the notice board of the factory. Those establishments having less than 50 workforce, this is not mandatory, but such establishments are encouraged to refer to model standing orders. Hope now it is clear.

Fixed term employment of workers, is nothing but employing workers for a fixed term, such as, 2 years/3 years or so.

Recently I have come across an article - a gist of which - is also reproduced below, for your better understanding.

"The government has notified fixed term employment for all sectors through an amendment to the Industrial Employment (Standing Orders) Central Rules, 1946. Fixed-term employment for all sectors will make it easier for companies to hire-and-fire workers along with reducing the role of middlemen.

As per the the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, 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”. No employer of an industrial establishment shall convert the posts of the permanent workmen existing in his industrial establishment on the date of commencement of the amended rules, that is, March 16 as fixed term employment thereafter, the notification stated.

The notified rules for fixed term employment provide for equal work hours, wages, allowances and other benefits as that of a permanent workman along with 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.

However, no workman employed on fixed term employment basis as a result of non-renewal of contract or employment or on its expiry shall be entitled to any notice or pay in lieu thereof, if his services are terminated. No notice of termination of employment shall be necessary in the case of temporary workman whether monthly rated, weekly rated or piece rated and probationers or badli workmen, it said.

The government had notified fixed-term employment for apparel manufacturing sector only in February 2017. In December, the Union Cabinet approved proposed extension of fixed-term employment to leather, footwear and accessories industries. Earlier this year in January, the labour ministry had issued a draft notification for extension of fixed-term employment for all sectors through amendment of the Industrial Employment (Standing Orders) Central Rules, 1946.

While presenting the Union Budget for 2018-19, Finance Minister Arun Jaitley had said that the facility of fixed term employment will be extended to all sectors.

The move towards fixed-term employment will make it easier for companies to layoff workers, which could have a bearing upon job creation in the country. As per the International Labour Organization’s World Employment and Social Outlook for 2018, India’s unemployment rate is estimated to rise to 3.5 per cent for 2018 from 3.4 per cent estimated earlier. In absolute terms, the country’s unemployment is estimated to have risen to 18.3 million in 2017 from 17.8 million projected earlier, while for 2018, the ILO estimates unemployment to increase to 18.6 million from 18.0 million estimated earlier in its previous employment outlook report"

Thanks Sir.
Now it is More Clear.
Only Question remains if we can have Fixed Term employment in the State of Uttar Pradesh.
Regards

I had written an article on the "Concept of Fixed period Employment" which was published in 2018 (158) FLR Journal Section Page 16. The same is attached.
In U.P., you can engage a person on Fixed period but it would be termed as "Retrenchment" if his services are terminated. So according to me avoid the situation. If you can let me know as to the type of factory, I can advise you better. I am a consultant based at Meerut and have experience in Uttar Pradesh laws.
If you have any query after going through the article, feel free to get in touch.
S. Sensharma
7830718856
Mail I.D. [Login to view]

There is no restriction in engaging employees on fixed term in Uttar Pradesh. However, their termination on completion of 24o days or more, will amount to 'retrenchment' and, when their term expires, they will be entitled to retrenchment compensation under U.P. Industrial Disputes Act 1947, simultaneous, with the act of non-renewal of their contract.
As far as applicability of model standing orders is concerned, in my opinion, since the Standing Orders Act is not applicable, the model standing orders will also not be applicable, since model standing orders are framed only under the Standing Order Act.

what liabilities comes on employer in factories act after 500 employees in factory in madhya pradesh