Dear Seniors,
I have one query. In X Company, there are workers in regular roles and some on fixed terms. The number of regular workers is very low compared to those on fixed terms. Recently, we reached a wage agreement for regular workers. Now, the workers' union is demanding to convert fixed-term workers into regular positions. My question is, "Is it necessary to consider their demand?" Management is currently unable to accommodate their request. How long can we continue to employ them on a fixed-term basis?
Thank you.
From India, Hyderabad
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I have one query. In X Company, there are workers in regular roles and some on fixed terms. The number of regular workers is very low compared to those on fixed terms. Recently, we reached a wage agreement for regular workers. Now, the workers' union is demanding to convert fixed-term workers into regular positions. My question is, "Is it necessary to consider their demand?" Management is currently unable to accommodate their request. How long can we continue to employ them on a fixed-term basis?
Thank you.
From India, Hyderabad
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Dear Venkatesh, I do hope that either as an employer or as an HR manager, if you dispassionately analyze the concept of Fixed Term Contract Employment in any industry, you will certainly agree that it is only a stop-gap arrangement to effectively carry out some special or technical type of work lasting for a certain period. It facilitates the hire and fire of such ad hoc employees when the special work or the contract, as the case may be, expires. Therefore, compared to the number of regular workmen employed in the core activity of the establishment, the number of FTC employees should certainly be far less.
Viewed from this perspective, your unqualified statement of admission that the number of regular workmen in the establishment is far less than that of the fixed-term contract employees is a glaring indication of unfair labor practice, even though it is permitted under rule (3A) of the amended Industrial Employment (Standing Orders) Central Rules, 1946, w.e.f 16-03-2018.
As it is, the FTC employees have no locus standi to demand their absorption as regular employees on the expiry of their contracts, but the trade union can. You cannot justify rotating people endlessly on permanent jobs on an FTC basis. Since it is evident that there is a mismatch in the ratio of FTC workmen and the regular workmen employed in the same or similar activities of the establishment, if the management outrightly refuses to accept the demand, the union can be successful when the dispute gets escalated to the stage of industrial adjudication.
From India, Salem
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6108Viewed from this perspective, your unqualified statement of admission that the number of regular workmen in the establishment is far less than that of the fixed-term contract employees is a glaring indication of unfair labor practice, even though it is permitted under rule (3A) of the amended Industrial Employment (Standing Orders) Central Rules, 1946, w.e.f 16-03-2018.
As it is, the FTC employees have no locus standi to demand their absorption as regular employees on the expiry of their contracts, but the trade union can. You cannot justify rotating people endlessly on permanent jobs on an FTC basis. Since it is evident that there is a mismatch in the ratio of FTC workmen and the regular workmen employed in the same or similar activities of the establishment, if the management outrightly refuses to accept the demand, the union can be successful when the dispute gets escalated to the stage of industrial adjudication.
From India, Salem
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I do endorse Mr. Umakanthan's answer to your query. Let me supplement the following points.
Rights of Fixed-Term Employees
The employee hired on a fixed-term basis has the same rights as a permanent employee and is entitled to the same pay, working conditions, and an equivalent or similar benefits package.
Benefits of Fixed-Term Employment
The Fixed Term Employment contract can be beneficial for some workers in Information Technology Sectors, Manufacturing sectors, Textile Industries, and Automobile sectors where their skill sets are high but available for a limited duration due to sudden high or sudden low demand in the market.
Legislation and Employer Responsibilities
Although the legislation that came into existence in 2018 paves the way for the engagement of fixed-term employment in all sectors (initially applicable only to the Garment manufacturing sector), employers cannot use it as blanket permission to pay lesser wages than what regular workers are paid and to rotate the same workers for any number of years. Furthermore, the nature of jobs being handled by fixed-term workers would definitely be under scrutiny.
Looking at the above, it is unfair for employers to exploit workers by engaging them on a fixed-term basis repeatedly at lower wages than what regular workers are paid.
Concerns Over Workforce Composition
What is more startling is the fact that your FTC workers outnumber regular workers, which will not keep you in good stead. Therefore, there is a strong case for the union to raise an industrial dispute that may culminate in favor of the Union/workers.
It is high time your employer takes an appropriate and pragmatic decision as it is the thin end of the wedge.
Regards
From India, Chennai
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Rights of Fixed-Term Employees
The employee hired on a fixed-term basis has the same rights as a permanent employee and is entitled to the same pay, working conditions, and an equivalent or similar benefits package.
Benefits of Fixed-Term Employment
The Fixed Term Employment contract can be beneficial for some workers in Information Technology Sectors, Manufacturing sectors, Textile Industries, and Automobile sectors where their skill sets are high but available for a limited duration due to sudden high or sudden low demand in the market.
Legislation and Employer Responsibilities
Although the legislation that came into existence in 2018 paves the way for the engagement of fixed-term employment in all sectors (initially applicable only to the Garment manufacturing sector), employers cannot use it as blanket permission to pay lesser wages than what regular workers are paid and to rotate the same workers for any number of years. Furthermore, the nature of jobs being handled by fixed-term workers would definitely be under scrutiny.
Looking at the above, it is unfair for employers to exploit workers by engaging them on a fixed-term basis repeatedly at lower wages than what regular workers are paid.
Concerns Over Workforce Composition
What is more startling is the fact that your FTC workers outnumber regular workers, which will not keep you in good stead. Therefore, there is a strong case for the union to raise an industrial dispute that may culminate in favor of the Union/workers.
It is high time your employer takes an appropriate and pragmatic decision as it is the thin end of the wedge.
Regards
From India, Chennai
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